Alten's Stock Rebounds by 2.5% and Attempts to Move Away from Its Support at €52.45
The engineering and technology consulting specialist is regaining strength in mid-morning trading, in a Parisian market that is otherwise trending downward. The rebound comes after a difficult period that brought the stock down to closely watched support levels.
A 2.25% Rebound Not Sufficient to Restore Alten to Its Technical Milestones
Alten's stock gains 2.25% to €54.60, while the CAC 40 drops by 0.43% and the SBF 120 declines by 0.37%. The stock is among the notable rises in the SBF 120, though not reaching the top ranks where Soitec leads the session with over 5%. Today's rebound barely softens the monthly decline: the stock is still down 15.15% over the month and 27.1% over the year. Over three months, the performance remains positive (+4.5%), indicating that the downward trend in June erased most of the gains from spring.
The technical setup remains unfavorable. The price is 9.59% below its 20-day moving average (€60.39) and 9.87% below its 50-day moving average (€60.58), while the 200-day moving average at €65.11 is 16.14% above the current price, confirming the deterioration of the medium-term trend. The RSI at 33 indicates the accumulated selling pressure, with the stock having approached its support at €52.45 before today's rebound. The next resistance is at €66.80.
Valuation Returns to 7.5 Times Earnings After June's Decline
The prolonged decline in the stock has mechanically compressed multiples. Based on the expected earnings per share, the stock is trading at about 7.5 times the earnings for the current fiscal year and 6.8 times those of the next year according to the consensus of surveyed analysts, with an expected EPS growth of 10.9% from one year to the next. These levels reflect a low point in valuation for an engineering player that traded at significantly higher multiples at the beginning of the year. The stock's trajectory over the past few weeks illustrates the difficulty of the situation.
After crossing €65 in early June and marking a high since February, the stock has undergone declines, interspersed with brief technical rebounds on the 20-day or 50-day moving averages, without ever durably regaining its medium-term bearings. This morning's rebound brings the stock back to the vicinity of €55, without altering the fundamental reading: as long as the short-term moving averages are not reclaimed, the dynamic remains fragile. Breaking the €60 mark will be the next technical milestone to watch.
