Bouygues Shares Fall 1.77%, Among the Largest Declines in the CAC 40
Bouygues' stock is performing poorly in the CAC 40 mid-session, against a backdrop of a declining Parisian index. The downturn occurs as a major American bank has significantly raised its target on the stock, without halting today's slide.
Support Broken During Session at €49.33, Resistance Identified at €53
Bouygues shares have fallen 1.77% to €49.27, among the largest declines in the CAC 40, as the Parisian index falls by 0.54%. The stock breached its support at €49.33 during the session and remains near this level, after a 3.5% decline over the month.
The movement is diverging from short-term moving averages, with the price now 1.8% below the MM20 (€50.19) and 2.9% below the MM50 (€50.77). The price remains 9.20% above its MM200 (€45.12), and the yearly performance (+29.39%) indicates an underlying upward trend despite today's weakness.
The RSI at 50 and a slightly negative MACD (-0.38) indicate a flat dynamic, with no sign of an acceleration in the downtrend. Vinci (-1.1%) and Eiffage (-1.3%) are also declining, amid a deteriorating construction sector climate in France (construction climate at -17.2 in May, housing permits down 2% over twelve months).
JP Morgan Raises Target to €73 Following Memorandum of Understanding on SFR
JP Morgan today raised its price target on Bouygues from €62 to €73, while maintaining an overweight recommendation. Compared to the current price of €49.27, the new target represents a theoretical upside potential of about 48%, in line with a positive view of the telecom sector.
The broker positioned itself the day after the announcement of the memorandum of understanding signed with Orange and Free to purchase SFR, revealed on June 5. The deal values the targeted assets of Altice France at €20.35 billion, excluding XP Fibre, UltraEdge, Altice Technical Services, and overseas activities.
The group also continues to secure international contracts through Colas, including €76 million in Finland at the end of May and €345 million in Ontario earlier in the month. For stockholders, maintaining or a sustained break of the support at €49.33 will remain a technical reference to watch in the coming sessions, with the next bullish marker identified at €53.
