Viridien Shares Retreat Midday After a 95% Surge Over a Year
Viridien shares are down 3.15% this Wednesday midday, standing at 117 euros after closing at 120.8 euros the previous day. This correction follows a spectacular rise of more than 95% over the year, driven by the improved financial situation of the geoscientific technology group. The traded volumes remain modest, representing only 0.09% of the capital, indicating a pause in an exceptional stock market journey over several months.
Recent Decline Does Not Overshadow Yearly Gains
The decline observed this Wednesday midday does not erase the upward trajectory of the Earth data specialist. Over seven days, the stock still maintains an advance of 5.65% despite today's setback, and over three months, the increase reaches 61.6%. This momentum is particularly explained by the release of encouraging preliminary indicators on January 12th. Viridien then announced a revenue forecast exceeding $1.15 billion for 2025, with more than $440 million generated by the Geoscience division, up 10% year-over-year. The cash generation has crossed the threshold of $130 million, resulting in a net cash flow beyond $100 million. The company has made bond repayments totaling $97 million, demonstrating its ability to progressively reduce its debt. The net debt is expected to be around $750 million at the close of the fiscal year, continuing the debt reduction strategy initiated in recent years.
Strong Support from Financial Intermediaries
The case receives marked support from financial intermediaries. Barclays maintains a market-weight recommendation on Viridien and raises its price target to 150 euros, up from the previous 100 euros. At the current price of 117 euros, the price target is 20.3% above the current price. This view is echoed in the revision made last December by Bernstein, which had upgraded its recommendation from Market Perform to Outperform, with a target set at 117 euros, now achieved. From a technical perspective, the relative strength index shows a value of 79, indicating an overbought zone that partly explains the day's consolidation. The MACD remains positive with a main line at 8.08 against a signal line at 7.17, indicating a bullish momentum still present despite the correction. The stock is now trading below its resistance threshold of 124 euros, while the support is significantly lower at 88.60 euros, offering a comfortable safety margin in case of a more marked adjustment.
