Rexel Stock Climbs 2% and Defies a Struggling Construction Sector
The electrical equipment distributor is regaining momentum after a decline early last week. Jefferies has just raised its price target, as the stock performs in a well-oriented Parisian market.
Jefferies Raises Its Target to €44.20, Reinforcing a Buy Consensus
On June 30th, Jefferies raised its price target on Rexel to €44.20 from €43.70, maintaining its buy rating. With the current price at €38.06, this target offers a potential of about 16%. The day before, Morgan Stanley had also increased its own target from €42.00 to €42.50, confirming its overweight rating. Both firms thus support a positive outlook on the French distributor, in a European construction sector that is otherwise weakened: the construction climate was reported at -18.2 in France in June according to Eurostat, and construction output fell by 2.8% year-on-year in the country.
The Stock Approaches Its Resistance at €38.57 After Rebounding
The price gains 2.04% to €38.06 in early afternoon, while the SBF 120 index is up by 0.64%. The stock is nearing its resistance at €38.57, a threshold that had previously hindered bullish attempts. This rise largely erases the decline observed on June 23rd, when Rexel had fallen by 3% and hit its 20-day moving average. The stock is now trading above its three moving averages, with a nearly 13% gap from the MM200 at €33.69, indicating a strong underlying trend.
The RSI at 51 remains neutral, showing no signs of excess. Over three months, the gain reaches 16.21%, and 43.73% over one year. Breaking through the €38.57 resistance will be the next technical milestone to watch.
