Safran shares climb back above their 20-day moving average and rebound 10.5% in one week
The aeronautical engine manufacturer posts a sharp gain in a well-oriented CAC 40, where it ranks among the best performers of the morning. This move extends a rebound that began last week, after a marked decline since the third-quarter results were published.
The stock climbs back above its MM20 but remains below its two other moving averages
Safran gains 2.67% to €300.30, against €292.50 at the previous close, and is up 10.45% over one week. It thus moves back above its MM20 (€297.69), with a gap of 0.88%, marking the first recovery of this average since the late-October decline.
The road ahead is nonetheless still long: the MM50 (€316.95) is 5.25% from the price, and the MM200 (€316.02) is 4.97% away. This gap highlights the extent of the 15.74% drop over three months, which this week's rebound softens without erasing.
The RSI at 49 is neutral, after the oversold zone reached at the end of October, and the €271.80 support, broken and then tested several times, is no longer under threat at this stage. The stock ranks fifth among the biggest gainers in the CAC 40, which is up 0.7% at the same time.
A contract in nuclear deterrence and a share buyback in the background
On November 2, the group announced that it had been selected for three inertial navigation programs of the French nuclear deterrence, with its hemispherical resonator gyroscope technology equipping three of the main launch vehicles. This announcement is three days old: it fueled the week's rebound, but on its own cannot explain this morning's rise.
In the accounts, third-quarter adjusted revenue reached €9,003 million, and the annual targets raised in July were confirmed on October 23.
The results publication had nevertheless triggered an 8.5% drop during the session, as growth in spare parts for civil engines slowed to +17%. Safran has also carried out a €375 million share buyback program, executed at about 100% as of October 22.
The group also signed a late-October agreement with the Singapore Economic Development Board for an artificial intelligence center of excellence. On Thursday, the decline in oil prices and the easing of rates are supporting the Paris market.
