Viridien's Stock Soars 6.61% at Close on Divestiture Project
Viridien closed Friday, January 9th session at 116.10 euros, marking a 6.61% increase from the previous day, driven by news of a potential divestiture aimed at debt reduction.
Significant Market Movement
Viridien closed the session on Friday, January 9th at 116.10 euros, up 6.61% compared to the previous day. The stock was the highest gainer in the SBF 120 at mid-session. The traded volumes accounted for 1.03% of the capital, indicating a resurgence of investor interest. According to Bloomberg News, the oil services company is considering divesting its sensor unit to reduce its debt. This news has sparked market enthusiasm for this geoscience specialist, which has shown remarkable dynamics for several months, with a 17.99% increase over seven days and 115.8% over a year. The RSI now stands at 84, a level indicating an overbought zone. This threshold suggests that the stock might undergo a consolidation phase after its recent rise. The resistance at 113.10 euros was breached during this session, paving the way for new technical targets. The 20, 50, and 200-day moving averages, located respectively at 97.42, 99.71, and 68.72 euros, remain well below the current price, confirming the structural bullish trend of the stock.
Analyst Support and Business Prospects
Research offices continue to support this movement. Bernstein recently upgraded its recommendation to 'Outperform' with a target of 117 euros, nearly achieved during this session. Arctic Securities maintains its buy recommendation with a now surpassed target of 100 euros. The company also benefits from robust activity in its new business lines, expected to account for 30% of revenue by 2026, and a solid order book of 317 million dollars at the end of June in Geoscience. The divestiture project of the sensor unit is part of a debt reduction strategy that could allow the group to focus on its core business in seismic data processing. This strategic orientation comes as Viridien recently surpassed 100 million dollars in free cash flow in the third quarter. A monthly volatility of 13.18 and a positive MACD at 2.90 confirm the ongoing bullish acceleration, although caution is advised given the level of valuation reached.
