SES Shares Bounce Back 2.5%, Partially Recovering from June's Downturn
The Luxembourg-based satellite operator continues its recovery at midday in a positive Parisian market. The stock confirms the momentum started earlier in the week, following a severe correction in June. The session illustrates a return of buyers to the stock, now distanced from its recent low points.
A Nearly 17% Weekly Rebound Places the Stock Above Its Moving Averages
SES shares have risen 2.41% to €8.08, up from €7.89 the previous day. The stock now shows a weekly gain of 16.59%, significantly mitigating the 12.51% decline accumulated over the month. The stock is among the notable risers in the SBF 120, while the broader index has increased by 0.73% during the session and the CAC 40 has advanced by 0.72%. The price has moved back above its three moving averages, a signal that contrasts with the deteriorated technical configuration observed at the end of June. The stock is now 7.16% above the MM20 (€7.54) and 3.72% above the MM50 (€7.79), while the gap with the MM200 (€6.55) is over 23%. The RSI at 56 has returned to a neutral zone, after several weeks in oversold territory. The movement of the day extends the rebound that began on June 29, when the price had reached lows close to €6.60.
Barclays Lowers Price Target to €7.75 and Reverts to Market Weight
Yesterday, Barclays lowered its target for SES from €8.80 to €7.75, coupled with a 'market weight' rating. The new target set by the British broker is now 4% below the current price of €8.08, reflecting a discrepancy between the recent rebound of the stock and the analyst's cautious view. This adjustment follows a challenging June for the operator, marked by the breaking of several technical supports. Against the backdrop, the slowdown in Eurozone inflation to 2.8% in June, below consensus, fuels expectations of a monetary pause by the ECB. A more stable interest rate environment generally supports capital-intensive stocks like satellite operators. The next technical milestone is towards the resistance identified at €9.89, while the €7.75 zone, now Barclays' target, will serve as a short-term benchmark.
