Rexel stock rebounds following 11.4% sales increase in third quarter
The electrical equipment distributor rallies sharply mid-session, while the Paris market declines. The stock reacts to quarterly sales exceeding expectations, unveiled following a busy month of financial operations.
Sales of 5.45 billion euros and annual growth target raised to 7%
Rexel stock gains 1.95% to €32.41, in a CAC 40 declining 0.8% and an SBF 120 down 0.72%. Third quarter sales, published on October 22, reached 5,453 million euros, up 11.4% on a comparable basis and at constant number of days. The figure exceeds the average of the two analysts surveyed prior to publication, who expected 5.19 billion euros. The group also raised its annual growth target to approximately 7%, up from approximately 5% previously.
According to Chief Executive Officer Guillaume Texier, this represents "the strongest quarterly sales growth since 2022". North America grew 17.4% and Europe 4.5%. This rebound remains modest given the recent movement: the stock has still lost 13.25% over one month, following a capital raise of approximately 500 million euros in late September and the acquisition of American firm GCG. It continues to trade below its 20-day moving average at €33.91 (a gap of 4.42%) and below its 200-day moving average at €36.05.
Goldman Sachs and Oxcap Analytics raise their price targets during the session
Two brokerage firms adjusted their opinion on Friday. Goldman Sachs raised its price target from €43 to €46, with a buy recommendation, representing approximately 42% upside potential from the current price. Oxcap Analytics raised its target from €41.60 to €42.60 and opted for an overweight position.
Both targets remain significantly above today's price. On the technical side, the RSI at 40 remains neutral, and the support level at €31.72 sits less than 2% from the price, while resistance is at €37.36. This support represents the closest level to monitor following one month of decline.
