Danone's Stock Continues to Climb, Approaching a 15% Gain Over the Month
The food industry giant extends its upward momentum towards the end of the session, amid a rising CAC 40. The stock continues to climb as a major German firm has just raised its price target, while maintaining a sell rating.
Deutsche Bank Raises Its Target to €63 While Remaining at Sell
Danone's stock is up 2.05% at €73.68 during the session, on a new upward leg that brings the monthly gain to nearly 15%. The rise comes as Deutsche Bank has raised its price target from €59 to €63, while maintaining its sell rating. The new target is still nearly 14% below the current price, indicating a discrepancy between the stock's trajectory and the German research firm's assessment. Over recent weeks, several acquisitions in the Asia-Pacific region have supported the price recovery, including the acquisition of Australian Made Group completed at the end of June.
Stock Approaching the Resistance at €74.40, RSI at 77 in Overbought Zone
The stock is now approaching its identified resistance at €74.40, less than 1% away from today's price. The RSI stands at 77, in a marked overbought territory, while the price is 8.4% above its 20-day moving average (€67.95) and 12.7% above its 50-day moving average (€65.35). The movement is part of a short-term acceleration, with a gain of 5.4% over the week that extends the recovery started after the May low. The crossing (or not) of the €74.40 will be the next technical step to observe for the stock's trajectory.
