Schneider Electric Shares Fall 3.45% Following Tech Stocks
On Wednesday, December 17, Schneider Electric experienced a second consecutive session of decline, dropping 3.45% to 231 euros by midday. After a spectacular rebound of nearly 10% from November 21 to December 15, the French energy management specialist is taking a break and now posts the biggest drop in the CAC 40. This correction occurs in a context of widespread weakness in US tech stocks, although the company had recently benefited from an upgraded price target by Citi.
Schneider Electric's stock is now trading below its short and medium-term moving averages, with a 50-day moving average at 239.18 euros and a 200-day moving average at 225.85 euros. The RSI is at 64, indicating a still relatively neutral momentum, without marked overbuying or overselling. The MACD shows a positive histogram of 1.82, suggesting an attempt at a bullish reversal after several weeks of tension, although the MACD line at 0.06 remains just above its signal line set at minus 1.76. Bollinger Bands frame the price between 220.43 euros and 243.13 euros, placing the current level of 231 euros midway through this corridor. The support identified at 222.30 euros now becomes a key threshold to watch, while the resistance at 242.70 euros remains a short-term target in case of a rebound.
Citi raised its price target to 300 euros from 280 euros and maintains its buy recommendation, published on December 15, the day before the start of this correction. This revision follows the company's disclosure during its investor day on December 11 of growth targets for 2025-2030, aiming for an organic revenue growth of between 7% and 10% per year and a cumulative improvement of its adjusted operating margin by 2.50 percentage points over the period 2026-2030. Morgan Stanley also raised its price target from 275 to 280 euros on December 15, highlighting the company's strong positioning in promising markets such as data centers. Despite these encouraging prospects and a new share buyback program ranging from 2.5 to 3.5 billion euros by 2030, investors remain cautious, favoring profit-taking after the sharp rebound observed in early December.
