Nearly 10% erased in one month: cement maker Vicat sees its share advance by 1.5%

A rebound that leaves the share below its three moving averages

The Vicat share gains 1.37% to €59.00 in trading, while the CAC 40 advances 0.65%. The share nevertheless remains below its 20-day moving average (gap of -2.25%), below the 50-day average (-6.57%) and below the 200-day average (-11.06%), which places this rebound within a downward trend: the decline reaches nearly 10% over one month and 12.2% over three months. The support at €58.00 is less than 2% from the current price.

It was approached at the start of the month, when the share had slipped below €58.80, before Friday's rebound. The RSI at 40 remains in neutral territory.

A semester up and an acquisition in negotiations in the Southeast

The group published on July 30 a turnover increasing by 10.8% in the first half and raised its annual targets, with expected growth of 7% to 9% at constant scope and exchange rates. It had however signaled a rise in energy costs, which should materialize further in the second half, and unfavorable exchange effects. On October 1st, Vicat entered into exclusive negotiations to acquire 48 concrete plants and 9 aggregate quarries from Cemex, in the Rhône Valley and Provence-Alpes-Côte d'Azur. According to the consensus of surveyed analysts, the share is trading at approximately 9.3 times the earnings of the current fiscal year, and 8.2 times those of the following fiscal year.