Econocom share rebounds but remains down 18.5% over one year
The Belgian digital services group posts a session rebound following quarterly revenue that breaks with the first-half trend. However, the share remains well below its levels from a year ago.
A third quarter up 5% that fails to erase the annual cumulative decline
The Econocom share gains 2.64% to €1.36 in session trading, following the publication on October 20 of third-quarter revenue up 5%, of which 3.4% on an organic basis. This result follows a first half marked by a 5.3% organic decline, according to the July 23 publication. The cumulative total nevertheless remains negative: at end-September, sales reached €2,097 million, down 1.0% year-over-year.
The group maintains its annual growth target of 2% to 3%, placing the final quarter at the heart of the fiscal year. On valuation, according to the consensus of surveyed analysts, the share trades at approximately 3.9 times current-year earnings.
Share below its moving averages, 9% away from its 200-day MA despite today's rebound
The rebound occurs as the price sits at the contact of its 20-day moving average at €1.36, but below the 50-day MA (€1.43, or 4.9% gap) and the 200-day MA (€1.50, or 9.3% gap). The share loses 6.21% over three months and 18.37% over one year, such that today's gain merely attenuates the quarterly decline. The RSI at 41.56 remains neutral. Support at €1.26 and resistance at €1.53 now frame the trading range, with the 50-day MA being the first level for the share to overcome.
