Technip Energies Shares Drop 2.89% Despite JP Morgan's €48 Target
Technip Energies falls 2.89% at midday this Tuesday, March 3, to €34.30, in a European market shaken by military escalation in the Middle East. However, the stock is still trading above its 50-day moving average, after a year-on-year increase of over 14%. JP Morgan has raised its price target on the stock today.
Market Context and Impact on Technip Energies
The decline of Technip Energies occurs as European markets fall by 1 to 3% in response to military operations in Iran. Brent crude prices have jumped to over $80 a barrel and European natural gas (TTF) has soared by nearly 25%, amid avoidance of the Strait of Hormuz by major global shippers. This strategic channel, through which a significant portion of the world's oil transits, is now being bypassed, which lengthens trade routes and increases transport costs.
For an engineering group specialized in energy infrastructure, this surge in oil and gas prices could be a supportive factor in the medium term, stimulating investments in new capacities. The day's decline appears more related to the general correction movement of European markets than to any company-specific element. However, the extent of the decline is still contained compared to the performance accumulated in recent months: the stock still shows a gain of nearly 6% over three months and more than 2% over seven days.
JP Morgan Raises Price Target on Technip Energies
In a note published this Tuesday, JP Morgan has raised its price target on Technip Energies from €44 to €48, while maintaining its 'overweight' recommendation. This new target implies a revaluation potential of about 40% compared to the current price of €34.30, reflecting the American bank's strong conviction in the company's prospects.
From a technical perspective, the stock remains positioned above its 50-day moving average, established at €33.06, a level that has served as a support point during the recent weeks of trading. However, the 200-day moving average is at €35.90, above the current price, indicating that the longer-term trend has not yet been reclaimed. The RSI, an indicator measuring the bullish or bearish momentum of a stock, stands at 65: a level still distant from the overbought zone (generally set at 70), leaving room for growth before reaching a potential technical excess.
The next milestone for the company: the publication of the first quarter 2026 results, expected on April 30.
