Alstom Shares Bounce Nearly 4%, Outperforming the CAC 40
The railway manufacturer's stock is regaining momentum mid-session in a significantly bullish Paris market. The rebound comes after several challenging months for the stock, which remains distant from its medium-term technical benchmarks. Deutsche Bank has also adjusted its target on the stock.
A Technical Rebound Bringing the Price Back to Its 20-Day Moving Average
Alstom has risen 3.68% to €16.33 mid-session, while the CAC 40 has increased by 1.77% and the SBF 120 by 1.73%. The stock is recovering after testing its support at €15.75, which held and supported today's rebound. The RSI at 27 indicates seller exhaustion over the past weeks, in a context where the stock remains below its 20-day moving average (MM20) at €16.90 (a gap of -3.37%) and well under its 200-day moving average (MM200) at €22.59. The more than 33% decline over three months highlights the extent of the correction that today's session only partially offsets.
On the downside, the net short positions declared accumulate 3.05% of the capital, distributed among three funds (according to reviewed declarations). The level has decreased by 0.42 point in thirty days, indicating the beginning of unwinding bearish bets without a marked reversal. This point deserves attention without overinterpretation: it simply signals that some participants remain positioned against the stock.
Deutsche Bank Lowers Target to €19 After €700M Bond Issue
Deutsche Bank has reduced its price target from €20 to €19 on June 11, while maintaining its 'hold' rating. The new target implies an upside potential of about 16% from the current price. Based on the expected earnings per share, the stock is trading at approximately 9.6 times the earnings for the current fiscal year and 7.7 times those of the next, according to the consensus of surveyed analysts.
This adjustment follows shortly after the completion of the group's first hybrid green bond, raised on June 9 for €700M with a coupon of 5.25%. The operation is part of the €1.5 billion EMTN program initiated in early June and aims to finance the manufacturer's ecological transition. The resistance at €17.77 will be the next technical benchmark to gauge the strength of the rebound.
