Eiffage stock among CAC 40's best performers, +2.5%
The construction and highway concessions group rebounds sharply at close, among the best performers of the CAC 40, after several weeks of decline. This return to form occurs in a well-oriented Paris market and while the stock remains significantly below its long-term averages.
A rebound that brings the stock back to its 20-day moving average
Eiffage gains 2.34% and closes at €99.70, among the strongest gains in the CAC 40, which advances 0.83% to 7,847.32 points. The movement erases the previous session's decline and brings the price in contact with the 20-day MA at €99.60, while the stock had been regularly falling below its €98.72 support in recent days, as shown by the decline of October 20. The RSI at 41 remains neutral, with no oversold signal. However, the rebound changes nothing in the overall picture: the price remains 6.03% below the 50-day MA and nearly 20% below the 200-day MA, and losses still reach 18.28% over three months.
The day's context is favorable for construction stocks, as Vinci gains 1.36% and Bouygues 1.49%. Both stocks show declines of 3.05% and 5.19% over one month, of similar magnitude to the 5.99% lost by Eiffage, demonstrating a sector in decline over the period. The group is also in exclusive negotiations to divest the management of Pierre-Mauroy stadium, according to the agreement protocol signed on October 21.
A P/E of 8.8 and French long-term rates under pressure in the background
Based on expected earnings per share, the stock trades at approximately 8.8 times current fiscal year earnings and 8.0 times next fiscal year earnings, according to the consensus of surveyed analysts, which anticipates EPS growth of 9.5%. This valuation benchmark is set in a market where the 10-year OAT, at 4.93% according to the Banque de France reading of October 26, remains far from its low point, with a spread of 1.56 points over the Bund. The cost of financing for the French state and major French companies remains a session topic.
On the short seller side, cumulative net short positions total 1.13% of capital, distributed between two funds, after an increase of 1.13 points over thirty days according to the declarations consulted. This level remains modest, but the speed of the increase warrants monitoring. The next level to watch is the €97.42 support, which was the previous session's close.
