Safran shares rebound but remain down 14.5% over one month
The aerospace engine manufacturer rose in morning trading, in a CAC 40 that is also well oriented. This rebound follows a decline that has persisted since the publication of its third-quarter results, and comes as an analysis firm has just adjusted its opinion on the stock.
A rebound that leaves the stock well below its three moving averages
At €280, Safran shares gain 1.56% intraday and rank among the strongest gainers in the CAC 40, which is up 0.49%.
The stock is, however, only recovering one notch within a downward trend: it is still down 14.4% over one month and 17.3% over three months, and remains 7.1% below its MA20 and 12.5% below its MA50. It is also trading 11.4% below its MA200.
The €271.80 support, tested at the end of October, lies about 3% below the current price, while the RSI at 32 reflects a market still dominated by sellers. The test of this level had already led to a rebound on October 29, without the stock managing to recover sustainably.
Wells Fargo lowers its target to €330 and maintains its overweight rating
The US broker has cut its target from €390 to €330, a level still about 18% above the day's price. It maintains its overweight rating, which places the target reduction within a logic of valuation adjustment rather than a fundamental change.
Analyst opinions thus follow the movement of the share price, which has lost ground since the third-quarter revenue, published on October 23, when growth in spare parts for civil engines had slowed. Going forward, the €271.80 zone remains the key technical level to watch.
