Among the best performers in the CAC 40, Safran shares rise 1.5%
The aerospace and defense engine manufacturer rebounds in mid-afternoon, within a significantly rising CAC 40. This upturn comes after a decline in the previous session and while the share trades below its short and medium-term moving averages. An analysis firm has moreover just adjusted its price target on the security.
A rebound that brings the price back to contact with its 200-day moving average
The Safran share gains 1.71% to €316.10, among the strongest gains in the CAC 40, which advances 1.04% at the same time. The share rebounds to contact with its MM200, at €317.39, after declining 3.33% over the week. This rebound remains nevertheless limited: the price remains below its MM20, at €328.78, representing a gap of 3.86%.
The support at €310.80 corresponds precisely to the previous day's close, making it the floor that the share has just recovered. The RSI at 34 reflects erosion over recent weeks, with a share that has lost 5.25% over one month.
UBS brings its price target to €350 while remaining neutral on the engine manufacturer
On October 7, UBS lowered its price target from €370 to €350, while maintaining a neutral rating. The new target leaves approximately 10.7% upside potential compared to the current price. The share had already declined that day, within an index oriented downwards.
On the context side, the 10-year OAT yield stands at 4.79% according to the Banque de France survey of October 9, at 11 basis points below the peak of 4.90% reached on October 1. Tension on French debt has accompanied the latest movements of the Paris index. The threshold to watch remains the resistance at €344.20, far above the current price.
