ADP share rebounds over 2% and signs one of the best gains in the SBF 120
Paris Airports benefits this Tuesday from an unexpected boost: JP Morgan simultaneously raises its rating and price target on the stock, in an SBF 120 that is losing ground. The share thus returns to its 20-day moving average, after several weeks under pressure.
JP Morgan upgrades to overweight and raises its target to 130 €, representing potential upside of nearly 18%
The American bank announced on Tuesday a significant change of opinion on Paris Airports: JP Morgan moves from "neutral" to "overweight" and raises its price target from 115 € to 130 €. Compared to the current price of 110.50 €, this target represents upside potential of nearly 18%. According to analyst consensus, this move comes in a context where the stock had already benefited in late August from similar support from Deutsche Bank, which in turn raised its opinion to "buy" with a target of 130 €. The convergence of two favorable ratings around this same target strengthens visibility on the stock, even though the share remains down nearly 5% over the month.
A rebound that brings ADP back to its 20-day moving average, in a declining Paris market
The 2.13% advance places ADP among the strongest gainers in the SBF 120 this Tuesday, while the broad index falls 0.38% in trading and the CAC 40 declines 0.40%. From a technical perspective, the share returns nearly to its 20-day moving average (110.39 €), from which it had moved away during August's decline. However, it remains below its 50-day MA (111.57 €) and its 200-day MA (112.16 €), two levels that continue to cap the technical rebound.
The RSI at 44 remains neutral, with no sign of buyer exhaustion at this stage. The next resistance level is at 123 €, a level the share had targeted during the late August rebound, while support at 106.10 € constitutes the reference floor in case of a new decline.
