Valeo's Shares Jump 2% Following a Contract with a North American Manufacturer

A New Generation Radar Contract Supports the Stock's Performance

Valeo's shares rose 2.15% to €12.61 during the session, within an SBF 120 up by 0.39%. The company announced on Tuesday that it had secured a contract to supply its new generation corner radars to a North American electric vehicle manufacturer. The system, designed for L2+ and L3 autonomy levels, offers a resolution fifty times greater than previous generations. This announcement has propelled the stock among the top gainers in the SBF 120, following a month marked by a near 5% decline. However, the rebound is modest compared to the weekly loss, with the stock still down nearly 10% over seven days.

The Stock Reapproaches its 50-Day Moving Average with a High Short Ratio

The price is now in direct contact with its 50-day moving average, located at €12.66, after having dipped below the 20-day moving average (€14.29) over the past week. The RSI at 50 indicates a lack of directional tension, while the 200-day moving average at €11.72 remains 7.6% below the current price, preserving the medium-term trend. According to collected statements, six funds hold a net short position of 9.01% of the capital, down 4.61 points over thirty days from a peak at 13.62%. This level remains high and signals persistent skepticism from institutional investors, although the reduction observed over the past month indicates a gradual covering movement. Based on the consensus of surveyed analysts, the stock is trading at approximately 7.8 times the earnings expected for the current fiscal year. Crossing the 50-day moving average remains the next technical milestone to watch.