Valeo Shares Dip Below Key Moving Averages After a 3.6% Decline in Quarterly Revenue
Valeo falls 3.71% to €10.775 this Friday mid-morning, following the announcement of its quarterly revenue. The automotive supplier suffers from a marked decline in a CAC 40 that is down 1.05% during the session, as a surge in oil prices beyond $106 per barrel weighs heavily on the entire European industrial sector.
Quarterly Performance and Market Context
Valeo revealed on Thursday a quarterly revenue of €5.12 billion, a contraction of 3.6% in reported figures. However, exchange rate effects and perimeter changes explain most of this decline: on a like-for-like and constant currency basis, revenues increased by 1.3%. The equipment supplier particularly claims a significant outperformance compared to a global automotive production which retracted by 3.4% over the period. Based on this, the management has confirmed all its annual targets for 2026, despite an environment marked by supply chain tensions and unfavorable currency fluctuations. The decline in the stock this morning occurs in a deteriorated sectoral context. The sharp rise in crude oil prices, fueled by military tensions in the Strait of Hormuz, impacts all industrial stocks exposed to energy and logistical costs. Schneider Electric is down 1.47% and Airbus falls by 2.78% during the session. Valeo's general assembly, scheduled for May 21, will be the next milestone for shareholders.
Technical Analysis of the Stock
Technically, today's decline brings Valeo's share price below its 50-day moving average (€11.33) and its 200-day moving average (€11.11), two thresholds that had been acting as markers for several weeks. This double downward crossing indicates a weakening of the short and medium-term trend. The RSI, at 52, remains in the neutral zone and does not signal an oversold condition. The stock is trading in the lower half of its Bollinger Bands, at 46% of the range between the lower bound (€9.97) and the upper bound (€11.72), without indicating any major directional excess. The nearest technical support is at €9.74, while resistance is established at €11.62. Over three months, the stock has declined nearly 13%, contrasting with a still positive performance of 25.35% over one year. Additionally, the group continues its strategy of integrating artificial intelligence: Valeo recently inaugurated an AI dedicated center in Cairo, stating that 35% of its code is now generated by this technology.
