Bouygues share among CAC 40 best performers, following UBS rating
The construction, telecommunications and media group is recovering in mid-afternoon, at the top of the CAC 40, after several months of decline. An analysis firm has just upgraded its rating on the stock, while the share remains far from its medium-term moving averages.
UBS upgrades to buy with a price target of €53.60
The Bouygues share is rising 1.2% to €41.43, placing it among the strongest gainers in the CAC 40, which is up 0.39%. It is still trading 14.15% lower than three months ago. UBS published today a buy rating with a price target of €53.60, representing an upside potential of nearly 29% from the current price.
The move comes after several difficult weeks: on October 1st, Berenberg had already initiated coverage with a buy rating, without stopping the decline in the share. Vinci and Eiffage, two other construction stocks, are gaining 0.51% and 0.40% today, with declines of 3.39% and 6.08% over one month.
A share below its three moving averages, with €40.26 as support
The share is trading 0.70% below its 20-day MA (€41.72), 6.08% below its 50-day MA (€44.11) and 13.47% below its 200-day MA (€47.88). The support level at €40.26 is less than 3% from the current price: the last intraday low of September 30th, when the €42 threshold broke, came close to it. The RSI at 35.36 reflects a share losing momentum, without yet entering oversold territory.
On the activity side, Bouygues Construction won a drainage tunnel project in Hong Kong on October 13th, with €94 million accruing to the group. The next key level remains the resistance at €45.10, which the share has not approached for several weeks.
