Nexans Shares Dip 2.5% Breaking Below the €140 Support Level
The French cable manufacturer continues its decline in mid-morning trading, in a Parisian market that is otherwise trending upwards. The stock is sinking to the bottom of the broader index, extending a correction phase that began in mid-June, just as analysts have revised their price targets.
The Stock Ranks Among the Largest Declines in the SBF 120
Nexans shares are down 2.07% at €137.30 in mid-morning trading, compared to a 0.65% rise in the SBF 120. The cable manufacturer is among the biggest losers in the broader index, while the Parisian market advances following lower-than-expected inflation in the Eurozone in June. Today's decline brings the weekly loss to nearly 8%, erasing some of the spring rally, with the monthly performance dropping to -12.4%. However, the stock is still up 27.6% year-over-year, with the medium-term momentum not being questioned.
The movement comes after a revision of analysts' opinions. JP Morgan has raised its price target from €140 to €160 while remaining Neutral, while Jefferies has lowered its target from €162 to €155, maintaining its Hold rating. The two new targets offer a potential upside of between 13% and 17% from the current price, without a strong buy conviction.
The Price Breaks Below the €140 Support and Falls Under its Short-Term Moving Averages
The stock breaks its support level at €140.20, already tested at the end of June during the June 26 downturn. This break leaves it 8.2% below its MM20 (€149.55) and nearly 11% below its MM50 (€154.07), confirming the weakening of the short-term trend after the spring rally of more than 30%. The RSI at 38 indicates selling pressure from recent sessions without yet entering an oversold zone.
The MM200 at €132.77 remains 3.4% below the price, which preserves the underlying trajectory. The next technical marker is around this long-term average at €132.77, in case the movement continues. On the upside, reclaiming the €140 level and then the MM20 at €149.55 would be steps towards stabilization, with a resistance target at €162.60, now close to Jefferies' revised target.
