Capgemini's Stock Slides Further, Breaking Below the €89 Support Amid Pressure

Capgemini Breaks Below the €89 Support, Significantly Lagging Behind Its Moving Averages

Capgemini's stock falls 1.99% to €87.74 during the session, while the CAC 40 drops 0.72%. The stock has broken through its €89 support level during the session and remains below this threshold, extending the decline that began last week (-9.29% over one week). The price is now well below its three moving averages: 11.86% below the MM20 (€99.55), 13.80% below the MM50 (€101.79), and more than 26% below the MM200 (€118.61), indicating a significant downward trend. The RSI at 35 is moving towards the oversold zone, with no clear signs of a rebound at the moment. Over the year, the stock has lost more than 38%. This decline follows the 8.5% drop on June 18, when the stock hit a multi-year low following Accenture's warning in New York.

Valuation at 6.8 Times Earnings Amid Tighter Central Bank Policies

According to the consensus of surveyed analysts, the stock is trading at about 6.8 times the expected earnings for the current fiscal year and 6.4 times those of the next fiscal year, with an estimated EPS growth of 6.6% from one year to the next. A compressed multiple that reflects the skepticism accumulated since the presentation at the end of May of the group's strategic roadmap through 2028, focused on the deployment of agent-based AI with a target annual growth rate of 5.5% to 7.5% between 2025 and 2028. The market context remains unfavorable: major central banks toughened their stance last week, with the ECB raising its rates for the first time since 2023, and strategists believe the phase of supporting valuations through accommodative monetary policies has ended. Without any immediate financial milestones, the behavior of the stock around the now breached €89 threshold, now immediate resistance, provides the most direct reading of the movement.