Leading the SBF 120 pack, Worldline stock rebounds by over 4%
The European payments specialist is making a strong recovery mid-morning in an upward-trending Paris market. This renewed activity comes after several weeks of marked correction, which brought the share down to very low valuation levels.
A rebound that ranks the stock among the strongest gainers in the SBF 120
Worldline shares are up 4.21% to €10.64, compared to €10.21 at the previous close, and rank among the strongest gainers in the SBF 120, which is rising 0.85% at the same time. The move is not enough to erase the 25.03% decline recorded over one month, while the stock remains below its three moving averages: the 20-day MA at €11.84 is 10.10% above the price, the 200-day MA at €12.64 is 15.79% above the price. The rebound is supported by the €10.21 level, at which the price was trading at the previous close, with an RSI at 31 indicating an oversold configuration following the slide of recent weeks. In the bond market, the 10-year OAT stands at 4.90% according to the Banque de France survey of October 8, at the peak level of the series, with a 1.40 point spread against the Bund, in a session where the CAC 40 is up 0.83%.
A neutral view and declining short positions
Short positions have been scaled back: according to disclosures reviewed, three funds hold 2.56% of capital sold short, compared to 3.26% 30 days ago, representing a decline of 0.70 points. This pullback from a high level corresponds to a loosening of declared selling pressure, without being able to infer the intentions of market participants. On the analysts' views side, CIC Market Solutions maintained its "hold" opinion on October 8, with a price target of €12, or approximately 13% above the current price.
According to the consensus of surveyed analysts, the stock is trading at approximately 3.4 times the expected earnings for the current fiscal year. The next long-term reference point is the 200-day MA at €12.64, which the price must reach to reverse the downtrend.
