Safran share falls 3.8% over one month and struggles below its 20-day moving average at 331.69 €
Safran is losing ground this Thursday, retreating in a CAC 40 that is also declining. The pullback occurs after Wednesday's rebound, which had brought the stock back above its twenty-day moving average, a level that the price is now approaching again on the downside.
A pullback that puts the 20-day moving average to the test in a market downturn context
Safran is down 1.67% to 330.40 € during the session, in a CAC 40 that is declining 0.79%. The stock is approaching its 20-day moving average at 331.69 €, with a gap of only 0.39%, after finding it higher yesterday. In other words, Wednesday's rebound is not holding: the price returns to its 20-day moving average as soon as the next session. Pressure is more pronounced on the 50-day moving average side: the latter is at 339.28 €, which is 2.62% above the current price.
The RSI at 52 remains in neutral territory, with no oversold signal despite today's decline. Over one month, the stock is down 3.84%, in a context of retreating European markets amid rising bond yields weighing on valuations. The support level at 321.60 € remains the closest technical support in case of further decline.
Bernstein raised its target to 420 € and Safran has just entered Akira's capital
On Tuesday, September 22, Bernstein raised its price target on Safran from 410 € to 420 €, while maintaining its "outperform" rating. This target represents an upside potential of approximately 27% compared to the current price. At the same time, the stake in Akira, a specialist in the development and prototyping of propulsive technologies, was announced on September 22 through Safran Corporate Ventures, the group's investment subsidiary.
These two elements (constructive analyst opinion and strategic move in propulsion) were not sufficient to sustain the stock price durably, which erases part of Wednesday's gains this Thursday. Safran is also conducting a share buyback program of 375 million euros announced on September 18, which provides technical support in case of prolonged consolidation.
