Eramet shares, last in the SBF 120, fall after €500 million capital raise
The mining and metallurgical group drops to last place in the SBF 120 while the Paris Bourse remains stable. The announcement of a capital increase backed by the State dominates the session, following a further target price adjustment by a broker.
A €500 million rights issue, 64% guaranteed by the State
Eramet shares fell 6.73% to €34.36 during the session, the only index stock to lose more than 3%, while the CAC 40 is virtually flat.
The decline follows the announcement, on 13 November, of a €500 million capital increase with preservation of preferential subscription rights. The State has committed to cover approximately 64% of the amount, and the transaction aims to reduce the group's debt.
The stock is now down 9.4% over one week and 21% over one month, a decline accompanied by analysts' target price adjustments.
CIC Market Solutions cut its target price this morning from €46 to €37, after lowering it from €47 to €46 the previous day, while maintaining its "hold" rating. The €37 target remains above the current share price.
The €33.74 support is approaching, under moving averages all trending downward
In terms of price benchmarks, the stock trades below its three moving averages: the 20-day moving average at €36.36 is 5.5% above the share price, and the 50-day moving average at €40.72 is 15.6% above.
The €33.74 support is only about 1.8% from the share price, especially as the session has seen no rebound since the opening.
The RSI at 38 remains in neutral territory despite the series of declines. As a reminder, the group confirmed its 2026 targets on 9 November, with adjusted EBITDA of €540 million to €610 million, and announced an agreement to sell Arizaro for $71 million. The €33.74 level is the next price benchmark.
