Technip Energies Shares Decline Despite Goldman Sachs Endorsement
Technip Energies stock fell by 1.56% late Friday afternoon, standing at 31.64 euros, despite a favorable recommendation from Goldman Sachs earlier in the day. The stock has been declining for the third consecutive session and is now close to its technical support threshold. The energy engineering specialist continues a downward trajectory that began several weeks ago, in a challenging market context for the stock.
Goldman Sachs Initiates Coverage with a Buy Recommendation
Goldman Sachs has initiated coverage of Technip Energies with a 'buy' recommendation, citing strong momentum in liquefied natural gas (LNG) project activities and visibility on earnings growth linked to order intake. Goldman Sachs set a 12-month price target of 40 euros, compared to a closing price of 32.14 euros on December 18, implying an upside potential of about 24.5%. However, this note did not halt the ongoing correction in the stock. Trading volumes at mid-session remain moderate with only 0.15% of capital traded. Over the past week, the stock has already declined by 3.02%, thus extending a longer bearish trend. The broker noted that shares have fallen by about 20% over the last three months, a drop that the American bank considers excessive given the company's fundamentals. Furthermore, the European Investment Bank has provided 40 million euros in financing to Technip Energies to support R&D investments through 2028, focusing on clean and circular technologies. Despite these positive announcements, the market maintains a cautious stance on the stock, favoring profit-taking after a year that saw the stock rise by 22.09% over twelve months.
Significant Correction Observed in Recent Months
The correction observed in recent months is significant as Technip Energies has seen a decline of 22.87% over three months. This decline erases a large part of the gains accumulated over the year, although the annual balance remains positive with a progression of 22.09% over one year. The stock is now trading significantly below its medium-term moving averages, indicating a loss of technical momentum. The 50-day moving average is at 34.89 euros and the 200-day average at 35.19 euros, levels that the price has not been able to reach for several weeks. The stock struggles to emerge from its current weakness zone, despite favorable market prospects in the LNG sector. EBITDA growth is projected at 34.3% in 2026 and 10.9% in 2027, according to the note. Earnings per share are expected to increase from 2.26 euros in 2025 to 3.30 euros in 2027. These robust growth forecasts have not yet convinced investors to return to the stock en masse. The one-month volatility stands at 6.38, a relatively contained level that reflects a consolidation phase rather than a panic movement. The negative beta of less than 0.07 indicates a low correlation with the overall market, a recurring characteristic of the stock. Results published at the end of October 2025 were disappointing, with revenue of 5.4 billion euros over nine months, up 9% annually, but with an EBITDA margin maintained at 8.8%.
Technical Analysis Confirms Short-Term Weakening of Technip Energies Stock
Technical analysis confirms the short-term weakening of Technip Energies stock. The RSI stands at 37, a level that indicates a weakening of the bullish momentum without yet reaching the oversold zone around 30. This indicator suggests that selling pressure remains but could ease if the stock manages to stabilize its price. The stock is trading very close to its support threshold at 31.68 euros, a critical level to watch in the coming sessions. A break below this threshold could lead to a new phase of decline, while a rebound from this zone could initiate a technical recovery. The MACD shows a line at minus 0.68 against a signal line at minus 0.64, with a slightly negative histogram at minus 0.04. This configuration indicates a dominant bearish trend in the short term, even if the gap between the two lines remains limited. Bollinger Bands frame the price between an upper bound at 34.32 euros and a lower bound at 31.52 euros, showing that the stock is trading at the lower end of its volatility channel. The Chaikin Money Flow is at minus 0.28, a level that indicates significant capital outflows over the recent period. All these technical indicators paint an unfavorable short-term picture for the stock, despite growth prospects highlighted by analysts. The stock's ability to defend its current support will be a key factor in determining the course of its price in the upcoming sessions.
