Valeo Shares Rise 3.61% at Close, Bouncing Back After Three Days of Correction
Valeo makes a comeback late this afternoon. Following an expected correction on Monday, the automotive supplier regains strength and shows a clear rebound. This recovery momentum illustrates the market's continued confidence in the group's trajectory.
Significant Weekly Gain Amid Market Fluctuations
Closing at 12.36 euros, the stock has risen by 3.61% compared to Monday's close of 11.93 euros. This advance is part of a broader movement over the week: Valeo has gained 22.69% over the past seven days, showing a strong appetite for the stock despite short-term volatility. To put it in context, the CAC 40 is down by 0.27% today, highlighting a rotational move in favor of cyclical sectors like automotive. Capital rotation remains moderate at 0.43%, reflecting regular trading without overactivity. Over a longer period, the stock has recorded a gain of 26.33% over three months and 31.13% over twelve months, significantly outperforming the CAC 40, which has an annual gain of 9.59%. Tuesday's rebound follows natural profit-taking observed on Monday, after three consecutive days of gains (+21.5%) triggered by the quarterly release on Friday.
Strong Third Quarter Performance Exceeding Market Growth
On Friday, Valeo reported a third-quarter revenue of 4.997 billion euros, up 3.5% on a constant scope and exchange rate basis. This growth surpasses that of the global automotive market, which increased by 4.4% according to S&P Global Mobility. The supplier has notably outperformed in Europe, while China, after more challenging quarters, is gradually closing its gap with the local automotive market. Based on this, the management has confirmed all its 2025 targets: a revenue of about 20.5 billion euros, an EBITDA ranging from 13.5% to 14.5% of revenue, an operating margin of 4.5% to 5.5%, and a free cash flow before exceptional restructurings of 700 to 800 million euros. The group anticipates the fourth quarter to be of the same magnitude as the third, thus setting the expectations for the year-end close.
Technical Analysis Shows Strong Upward Momentum
Technically, the stock is now trading above its main 50-day and 200-day moving averages, at 10.57 and 9.81 euros respectively, signaling a clearly ascending dynamic. The Relative Strength Index (RSI) reaches 72, indicating an overbought zone where corrections remain possible. Bollinger Bands frame the stock between 9.21 and 11.67 euros, with the price oscillating above its upper limit, which underscores increased volatility. The major resistance threshold is established at 12.15 euros, slightly below the current price, while the technical support is set at 9.82 euros, providing a floor in the event of a more marked correction.
