Alten stock lagging the SBF 120, below its 68.35 € support level
BNP Paribas Exane lowered its price target for Alten on Thursday, in a challenging macro environment marked by the Federal Reserve's first rate hike since 2023. The stock is losing ground on Thursday, extending a bearish momentum that began in early September, following a failed rebound on Tuesday that had not been sufficient to erase the correction that started in early September.
Alten breaks through its 68.35 € support and posts the worst performance on the SBF 120
Alten is down 3.2% during the session at 68.10 €, the worst performer on the SBF 120, which itself is up 0.2%. The stock has broken through its 68.35 € support level during the morning session and remains below it, amplifying a bearish trend that had already cost nearly 8% in one month in early September. Over one month, the decline now reaches 7.97%, erasing much of the strong summer rebound.
Pressure is also being exerted through moving averages: the price is below the 20-day MA at 73.24 € (gap of 7.02%) and slightly below the 50-day MA at 69.04 € (gap of 1.36%), two levels that form a near-term technical ceiling. Only the 200-day MA at 64.74 € remains significantly below the current price, offering a cushion of 5.19%. The RSI at 47 remains neutral, with no marked signal of selling exhaustion at this stage.
BNP Paribas Exane revises its target downward on the same day, valuation reduced to 8.9 times earnings
On Thursday, BNP Paribas Exane lowered its price target for Alten from 90 € to 80 €, while maintaining its rating at "neutral". The new target represents an upside potential of approximately 17% compared to the current price, but the 10 € reduction confirms a revision of expectations for the stock. According to consensus among surveyed analysts, the stock is trading at approximately 8.9 times current fiscal year earnings and 7.9 times the following year's earnings, with earnings per share growth expected at 12.8% year-over-year.
This context of valuation discount is unfolding in a session marked by the Federal Reserve's first rate increase since 2023, raising the target range to 3.75%-4.00%, which is tightening global financial conditions and weighing on cyclical growth stocks. The 76.90 € resistance level represents the next level to break for a technical trend reversal to be considered.
