Technip Energies Stock: 2.55% Rebound Following Analyst Support
The stock of the engineering group specializing in energy transition gained 2.55% this Monday, October 13, closing at 37.82 euros after a 7.75% drop last Friday. This session marks an attempt to stabilize in a context of increased short-term volatility.
The rebound observed this Monday comes after a challenging week for Technip Energies, which still shows a decline of 4.5% over the past seven days. Trading volumes remained contained, representing 0.19% of the capital, a level that reflects moderate investor participation in this recovery movement. Over the past year, the stock's performance remains impressive with an increase of 80.1%, significantly outperforming the CAC 40 which advanced 4.7% over the same period. Today's session saw the Paris market gain 0.21%, a movement much less pronounced than that of Technip Energies, whose near-zero beta of -0.02 confirms a largely uncorrelated evolution from the benchmark index. The recent dynamics of the stock are part of a consolidation phase after reaching historical highs around 42.82 euros in September. Last Friday's correction, which had brought the price down to 36.88 euros, corresponds precisely to the current technical support level. This floor held at the beginning of the week, allowing the stock to rise again, even though the resistance at 41.60 euros remains out of reach for now. Over three months, the progression remains modest at 0.59%, reflecting a phase of hesitation after the gains accumulated in the first part of the year.
The recovery of the session was supported by favorable comments from Berenberg, which reiterated its buy recommendation on the stock with a target price of 45 euros. The analyst highlights the solidity of the group's commercial dynamics, anticipating a significant wave of new orders in the liquefied natural gas segment. According to him, two major projects in the United States and new orders related to Eni's Coral North project could add about 10 billion dollars to the current order book, thus strengthening future revenue visibility. Berenberg considers the recent price drop an interesting entry opportunity for investors. This analyst support comes a few days after a downgrade by BNP Paribas Exane, which had changed its recommendation from Outperform to Neutral on October 10, while raising its price target from 35 to 40 euros. This downward revision had weighed heavily on the stock last Friday. At the same time, Morgan Stanley and Barclays also adjusted their price targets to 36 and 42 euros respectively, thus creating a range of contrasting opinions on the stock's valuation. The gap between these different targets reflects the market's uncertainty about the pace of realization of the group's commercial opportunities in a changing energy environment.
From a technical standpoint, the relative strength index at 29 signals a marked oversold situation, a level that historically suggests a potential short-term rebound. The stock precisely rebounded on its support at 36.88 euros, corresponding to last Friday's low, which reinforces the relevance of this threshold as a technical floor. However, the stock remains positioned below its 50-day moving average established at 40.21 euros, indicating persistent bearish pressure in the medium term. Conversely, it comfortably maintains above its 200-day moving average at 33.47 euros, confirming the solidity of the underlying bullish trend observed over the past year. The Bollinger Bands, which frame fluctuations between 38.34 and 41.97 euros, illustrate a phase of controlled volatility after the abrupt variations of the previous week. The MACD, with a main line at -0.33 and a signal line at -0.10, remains in negative territory but presents a histogram at -0.24 that could initiate a turnaround if the rebound is confirmed in the coming sessions. The Chaikin Money Flow shows a negative value of -0.41, indicating that selling flows remain dominant despite the day's recovery. This divergence between the bullish movement of the price and capital flows suggests that the recovery remains fragile and will require more sustained buying volume to establish itself durably. The Average True Range at 0.60 also reflects moderate daily volatility contrasting with the amplitudes observed during recent correction sessions.
