Eiffage Shares Stagnate Despite a 12-Year Partnership with EDF in Nuclear Sector
In the mid-afternoon, the share price of the construction and concessions group is slightly declining in an otherwise positive Parisian market. The stock remains under pressure against its short moving averages, even as it has just sealed a long-term industrial partnership in the nuclear sector.
Eiffage Metal Seals a Twelve-Year Partnership with Arabelle Solutions in Nuclear Sector
Eiffage shares are down 0.24% at €124.45, while the CAC 40 is up 0.46% at 8,221 points. The stock remains detached from the market's upward trend, dominated in the session by Dassault Systèmes and Capgemini. On May 28, Eiffage Metal and Arabelle Solutions, a subsidiary of EDF, signed a twelve-year multi-year partnership for the manufacturing of modules and metal frames for condensers, intended for future heat exchangers in nuclear projects in France and Europe. This agreement extends the group's historical positioning in the sector, at a time when the EPR2 program is entering its industrial phase. This announcement adds to a series of recent contracts, including four solar power plants in Morocco won by Eiffage Energy Systems for 225 MWc, and railway works for the Seine-Nord Europe canal secured at the beginning of May. The order book is thickening, but the market does not positively sanction it at this stage during the session.
The Stock Moves Above Its MM200 but Remains Heavily Below Its Short Moving Averages
In terms of moving averages, the price is 4.90% below the MM20 (€130.86) and 7.15% below the MM50 (€134.04), confirming a degraded short-term dynamic. Conversely, the stock has just moved above the MM200, at €123.32, with a positive gap of 0.92% positioning it at a medium-term equilibrium point. The RSI at 40 indicates a lack of buying momentum without falling into an oversold zone. The technical support is at €121.00, about 2.8% below the current price, while resistance remains distant at €142.70. The performance has declined by nearly 15% over three months, despite Citi's recent return to a buy rating with a target of €155. The construction context remains mixed, with a business climate in the building sector at -17.2 in May and still negative order books in France, which weighs on the group's construction segment. The holding of the €121.00 threshold will be the next technical marker to watch, pending the publication of the semi-annual sales figures this summer.
