Valeo Shares Soar 9% and Break Through €13.17 Resistance
The automotive equipment manufacturer marks the highest increase of the broader index during the session. The stock has just surpassed a technical resistance that had been monitored for several sessions, following the announcement of a bond issue this morning to refinance part of its debt.
A Bond Issue with a 2033 Maturity Accompanies the Stock's Surge
Valeo's stock jumps 9.1% to €13.75, leading the SBF 120, while the broader index gains 0.86% during the session. The company announced on Wednesday the launch of a bond issue maturing in February 2033, aimed at financing general needs and potentially refinancing all or part of the 5.375% tranche due in May 2027. The operation aims to smooth out the debt wall of 2027 and to take advantage of a favorable market window for the equipment manufacturer. According to the consensus of surveyed analysts, the stock is trading at about 8.4 times the earnings of the current fiscal year and 6.2 times those of the following year. According to reviewed statements, eight funds accumulate 12.05% of the capital sold short, a level that has slightly decreased over thirty days (-0.68 point). The bearish bet remains high, but its gradual decline accompanies the rebound of the stock without allowing for a definitive conclusion.
The Stock Breaks Through Its €13.17 Resistance and Stays Above Its Three Moving Averages
From a technical perspective, today's rebound breaks the €13.17 resistance, previously identified in past sessions, and the price remains above at €13.62. The stock is now significantly above its MM20 (€11.81), MM50 (€11.13), and MM200 (€11.32), with a gap of more than 20% from the long-term average. The RSI at 61 remains in neutral territory, with no immediate overheating signal. The underlying momentum remains strong: +11.3% over the week and +51.4% over the year. The stock also benefits from a favorable environment for the sector, with Brent crude down 5% during the session, reducing pressure on the cost of inputs for equipment manufacturers. Forvia (+7.3%), OPmobility (+5.9%), and Renault (+4.8%) also rank high in today's standings. The next technical level to watch is above recent highs, as the stock has just cleared its €13.17 hurdle.
