Eramet Shares Drop 2.3% and Approach Key Support at €52
In early afternoon trading, the mining and metallurgical group is trending downward amid a lowered target price by an analysis firm. The stock is performing in a negatively oriented Parisian market and remains below its moving averages for several sessions.
AlphaValue Lowers Eramet Target to €60.20, Recommendation to Accumulate
On Wednesday, AlphaValue/Baader Europe reduced its target price for Eramet from €66.50 to €60.20, while changing its recommendation to 'accumulate'. The new target offers a potential of about 12% compared to the current price of €53.60, but represents a downward revision of nearly 9.5% from the previous target. The stock has lost 2.3% during the session, in an SBF 120 down by 0.38% and a CAC 40 losing 0.41%. The target revision follows the general assembly on May 27, which approved a €500 million capital increase, and as the group confirmed the partial restart of its Eramet Grande Côte site in Senegal at 30% of its nominal capacity after the February fire. The recent corporate calendar remains busy: Simon Henochsberg took over as CFO on May 26, succeeding Abel Martins Alexandre. However, the stock's trajectory remains heavy, with a decline of 8.38% over a month and 8.06% over three months.
Stock Remains Below Its Three Moving Averages, Neutral RSI at 49
At €53.60, the price is below the three main moving averages: MM20 at €56.15 (a gap of -4.54%), MM50 at €54.05 (-0.83%) and MM200 at €56.87 (-5.75%). This configuration confirms the bearish dynamics set since mid-May, after the stock failed to break through the resistance at €60.50, already tested several times at the beginning of May without success. The RSI at 49 remains neutral, with no oversold signal despite the marked decline in recent weeks. The technical support being watched is at €52.05, about 3% below the current price. The MACD remains negatively oriented, with a line at -0.24 below its signal line. Today's decline places Eramet in the lower part of the SBF 120 ranking, while the index sees Valeo and Abivax dominating the session. The next reference point for the stock will be its behavior facing the support at €52.05, the last barrier before the May lows at €49.68.
