Capgemini Shares Dip Below €100, Threatening Support at €96.70

Stock Falls Below Moving Averages, Approaching a Key Support

Capgemini shares are down 1.41% at €99.08 at mid-session, while the CAC 40 is down 0.23%. The stock ranks low in the Paris index, with Danone and STMicroelectronics leading the market. The price is below the 20-day moving average (MM20) at €101.80 (a -2.67% difference) and the 50-day moving average (MM50) at €102.60 (a -3.43% difference), confirming the loss of short-term benchmarks regained during the rebound on June 4. The gap to the 200-day moving average (MM200) at €119.67 reaches -17.21%, indicating a medium-term downgrade consistent with a year-on-year loss of 34.2%. The RSI at 48 remains neutral, leaving the stock close to the support at €96.70, about 2.4% below the current price.

Compressed Valuation and Focus on the 2028 Strategic Plan

Based on the expected earnings per share, the stock is trading at about 7.7 times current year earnings and 7.2 times next year's earnings, according to the consensus of surveyed analysts. The expected EPS growth from one year to the next is 6.7%, placing the valuation at a compressed level compared to the historical average of the IT services sector. As a reminder, the group unveiled its roadmap towards 2028 at the end of May, focusing on the deployment of agent-based AI, with a target for organic growth of 5.5% to 7.5% per year and an improvement in operating margin. The presentation was followed by a marked decline before a rebound in early June, following a target revision by Deutsche Bank. Additionally, the re-acceleration of production inflation in China (+3.9% in May) and tensions on oil maintain a challenging macro environment for European cyclical stocks. The €96.70 support remains a short-term technical level to watch.