Saint-Gobain Shares Climb 2.5% Defying a Bearish CAC 40
The construction material group's stock sees a sharp rise this Friday morning, amidst a generally declining CAC 40. Two brokerage houses upgraded their ratings the day before, providing support to the stock price. This movement comes just before the annual general meeting.
Two Target Price Upgrades Boost the Stock During the Session
Saint-Gobain shares are up 2.45% at €80.38 by mid-morning, while the CAC 40 is down 0.18%. This increase places the stock among the most notable rises in the index, though not at the top of the leaderboard, which is dominated by ArcelorMittal (+8.92%) and Airbus (+4.73%). CIC Market Solutions initiated coverage with a 'buy' rating and a target of €100, while Barclays raised its target from €105 to €108, maintaining an 'overweight' rating. Based on the current price, these targets offer a theoretical potential of approximately 24% and 34%, respectively. Today's movement adds to an already strong dynamic, with a performance of +4.12% over one month and +9.86% over three months, although the stock is still down 19% over the year.
Stock Price Moves Above Short-Term Averages but Stumbles Below the 200-Day Moving Average
Crossing the €80 mark brings the stock closer to its identified resistance at €81.76, a threshold previously tested during the rebound on June 24. The price is now 3.26% above its 20-day moving average (MM20) of €77.84 and 4.07% above its 50-day moving average (MM50) of €77.24, while the 200-day moving average (MM200) at €82.01 remains slightly above the current price (a gap of -1.99%), posing the next graphical hurdle. The RSI at 55 indicates a neutral configuration, without directional excess. In the background, the European construction sector remains weakened (construction climate in France at -18.2 in June, French production down 2.8% year-on-year), which limits sector visibility.
