Bouygues Stock Declines 1.5% and Approaches Its 43.75€ Support Level
The construction and telecommunications conglomerate's shares retreat during the session, within a CAC 40 that is also in negative territory. JP Morgan nevertheless raised its price target on the stock on Wednesday, a move that does not prevent today's decline in an overall cautious market.
A Contained Pullback Below the Three Moving Averages, Within a Declining CAC 40
Bouygues falls 1.67% to €44.10 during the session, among the steepest declines in a CAC 40 that is also down 0.69%, with the entire market oriented downward this Friday. The stock is trading below its three moving averages: the 20-day MA at €44.71, the 50-day MA at €46.55, and the 200-day MA at €48.10, with respective gaps of -1.36%, -5.26%, and -8.32%. This bearish configuration has persisted for several weeks, with a monthly performance of -7.06% and a three-month performance of -12.53%.
The RSI at 47 remains neutral, with no marked signal of selling exhaustion, while the price approaches the €43.75 support level, with a gap of approximately 0.8%. Among comparable peers in the sector, Vinci declines 0.58% and Eiffage 0.42%, positioning Bouygues at the lower end of the sectoral range without deviating radically. In the background, the construction industry outlook remains difficult in France, with residential permits down 8% over twelve months and public works activity declining 7.6% over three months according to sectoral data.
JP Morgan Raises Its Target to €75 But the Stock Erases Wednesday's Rebound
On Tuesday, September 16, JP Morgan raised its price target on Bouygues from €73 to €75, while maintaining its "overweight" rating. At this level, the target implies an upside potential of nearly 70% compared to the current price of €44.10, which reflects a significant gap between market valuation and the American bank's opinion. This increase had supported the stock on Wednesday, which had advanced 1.5%.
Friday's decline erases this gain in a context of an overall unfavorable market, with the Federal Reserve's decision to raise its rates earlier in the week and the Bank of Japan's increase to 1.25% weighing on European risk assets. On the fundamentals side, during the publication of the first half of 2026 on July 31, the group confirmed its target of revenue stability at constant exchange rates for 2026 and the maintenance of its current operating income from activities at a historically high level. The €43.75 support constitutes the next technical level to monitor, less than one percentage point away from the current price.
