Ontex Group Share: 1.81 € support breached, Moscow takes control of its subsidiary
The Belgian disposable hygiene manufacturer touches a new absolute low in early afternoon trading. The session follows the announcement of a Russian presidential decree targeting its local subsidiary, in a Paris market showing a slight increase.
Russian decree targets Ontex Rusland, subsidiary accounting for up to 8% of adjusted EBITDA
The share touched 1.78 € during the session, a new all-time low after the previous floor of 1.80 € reached on October 2. The current price, 1.81 €, is nearly stable (-0.22%) while the CAC 40 advances by 0.28%. This Thursday, October 15, a Russian presidential decree targeted Ontex Rusland, which the group indicated in a press release published this Friday.
The subsidiary represents approximately 5% of the group's total revenue. According to the news headline, Russia has taken operational control of the entity, which accounts for up to 8% of adjusted EBITDA.
1.81 € support breached, moving averages well above current price
During the session, the Ontex Group share breached its 1.81 € support before stabilizing nearby. The price remains below the 20-day MA (1.96 €, gap of 7.8%) and the 200-day MA (3.17 €), the latter nearly 43% above current price. The decline stands at 18% over three months and nearly 71% over one year.
According to the consensus of surveyed analysts, the security is trading at approximately 4.2 times expected earnings for the current fiscal year. The RSI at 35 remains close to the oversold zone, below the 2.45 € resistance level.
