Schneider Electric Shares Fall 2%, Among the Largest Declines in the CAC 40
The electrical equipment specialist slows down mid-morning, following a major external growth announcement. The stock is among the biggest losers in the CAC 40, which is itself trending downward. The decline follows a significant rebound the previous day, which had led the stock to the top of the index.
Cautious Digestion of the $3.1 Billion Acquisition of Cognite
Schneider Electric drops 1.93% to €279.90, down from €285.40 the previous day. The company announced on June 30 the acquisition of Cognite Holding for $3.1 billion in cash, a data and industrial AI software platform aimed at strengthening its subsidiary AVEVA. The operation expands the group's software portfolio in production chains and asset management, in a context where the demand for AI infrastructure remains strong.
The movement of the day follows a €1.5 billion bond issuance completed at the end of June, intended to refinance maturities over the next twelve months. Over three months, the stock has performed over 22%, despite today's pullback.
Contained Technical Pullback, as Analysts Raise Their Targets
Despite today's drop, the price remains above its MM20 at €276.88 and its MM50 at €273.22, with the MM200 even lower at €250.92. The RSI at 57 keeps the stock in a neutral zone, without any excess signal. The stock fluctuates between its support at €257.70 and its resistance at €292.75, the latter having been tested in mid-June during the historical record at €291.
Regarding analyst opinions, BofA Securities raised its target from €320 to €330 on June 30 while maintaining a buy rating, whereas Morgan Stanley increased its target from €300 to €315 the previous day, maintaining an overweight rating. These targets are respectively 18% and 12.5% above the current price. The holding of the MM20 will be the first observable benchmark in the coming sessions.
