Capgemini Shares Hit a 6-Year Low, Down 14.5% Over the Month
The digital services group's stock continues its slide in early afternoon trading, bucking the trend of a CAC 40 that is making slight gains. The session is marked by the intraday break of a closely watched technical threshold and a lowered price target by Citi.
Citi Lowers Target to €130, CAC 40's Lantern Rouge Breaks Support During Session
Capgemini's stock is down 3.32% at €87.88, placing it at the bottom of the CAC 40 while the Paris index gains 0.38%. The movement is directly linked to a lowered price target by Citi, which has reduced its target from €160 to €130, while maintaining a buy rating. The new target still offers a theoretical margin of nearly 48% compared to the current price, but the significant revision heavily weighs on sentiment. Moreover, the stock has broken its support at €87.82 during the session, touching a low of €87.06 before rebounding to the threshold. It is also noteworthy that institutional bearish pressure is intensifying: according to reviewed statements, four funds cumulatively hold 2.43% of the capital sold short, a position that has more than tripled in a month (+1.74 points). This rapid rise reflects a settling bearish bet, although it does not yet reach the extreme levels observed on other SBF 120 stocks. Despite today's revision, the analysts' consensus remains positive.
A Stock Detached from Its Moving Averages, Nearly 39% Down Over a Year
Today's slide extends a significant underlying trend: Capgemini is down 14.18% over a month and 38.57% over twelve months. The stock is below its 20-day moving average (MM20) at €91.82 (a gap of -4.29%), its 50-day moving average (MM50) at €98.08 (a gap of -10.40%), and especially its 200-day moving average (MM200) at €116.44, showing a detachment of 24.53% from the latter, indicating the depth of the medium-term bearish movement. The RSI at 43 remains in the neutral zone, not signaling any overselling. The intraday break of the support at €87.82, which has been tested several times since late June, now serves as the central technical reference: the late morning rebound at this level remains fragile as long as the stock stays below its 20-day average. In terms of valuation, the stock is trading at approximately 6.8 times the earnings expected for the current fiscal year, according to the consensus of surveyed analysts, a contracted multiple that reflects the current distrust. The next key event is the publication of the semi-annual accounts, a period of silence that has already begun.
