BNP Paribas shares among the best performers in the CAC 40, +9.9% in one week
The bank extends its rebound in a well-oriented CAC 40, after several weeks of decline. The stock is approaching its long-term moving averages, while an analysis firm has just adjusted its target price.
A rebound that brings the stock back in contact with its 50-day moving average
BNP Paribas shares gain 2.43% to €94.16, among the strongest gains in the CAC 40, which is up 1%.
The stock has risen nearly 10% over one week, but remains down 16.26% over three months. It now trades above its 20-day moving average (€88.14, a gap of 6.83%) and close to its 50-day moving average (€94.58), while the 200-day moving average, at €95.43, is only just above the share price. This renewed momentum is accompanied by an RSI of 60, far from extreme zones.
The rebound is shared by Société Générale, which gains 2.2% intraday, while Crédit Agricole remains stable.
The French sovereign debt spread has eased slightly: the 10-year OAT yields 4.79%, 34 basis points below its October 22 peak of 5.13%. Historically, the bank's share price has moved inversely to the OAT-Bund spread, which currently stands at 1.53 points.
UBS cuts its target to €111 and maintains its buy rating
UBS has lowered its price target from €119 to €111, while maintaining its buy rating. The new target implies a potential of about 18% relative to the current share price. This adjustment follows the publication of third-quarter results, for which earnings per share were expected at €2.88.
Based on the consensus of the analysts covered, the stock trades at about 8.3 times earnings for the current fiscal year. The bank also announced on October 28 a share buyback program of €1.3 billion.
Technically, the resistance level at €98.26 remains the next level to break, with support at €82.57.
