Bureau Veritas share falls back below its 29.35 € resistance level and declines 1.7%
The inspection and certification group retreats during the session, in a declining Paris market. This pullback occurs two days after the publication of its quarterly revenue, the first period presented under its new organizational structure.
A decline that cuts short the momentum from the previous day following the third quarter
The stock loses 1.7% to 28.85 € compared to 29.35 € at the previous close, while the CAC 40 falls 0.82%. It ranks among the strongest declines in the index, far behind Kering and Safran. The decline erases part of Wednesday's gain, when the stock had broken through its 27.98 € resistance level. The price remains well above its 200-day moving average (spread of 6.30%), so today's pullback does not call into question the underlying trend.
The session is marked by tension on French debt: the 10-year OAT is at 5.13% according to the latest Bank of France reading from October 22, its highest level since 2004. The CAC 40 is evolving in this context, as are other securities on the Paris exchange. The group itself is repurchasing its own shares: the 200 million euro program announced on February 25 was executed at approximately 33% by October 20.
Solid quarterly figures and two analyst price targets raised
Third quarter revenue, published on October 21, increased by 10.1% with organic growth of 6.2%. The group confirmed all of its full-year targets. Over nine months, organic growth reaches 5.7%, with a negative currency effect of 1.2%, which turned favorable in the third quarter alone.
Regarding analyst opinions, Rothschild & Co Redburn moved yesterday from a 36 € target to 37 € with a buy rating, while BofA Securities adjusted its target from 32 € to 35 €. Both targets are above the current price of 28.85 €. The stock gains 3.33% over one week, and its RSI at 64 remains below the overbought zone.
