Safran stock breaks through its 271.80 € support level with RSI in oversold territory at 21
The aerospace engine manufacturer extends a decline that has lasted several weeks. It broke through a technical threshold during the session that it had maintained for some time, while two research firms adjusted their opinions this morning.
A 271.80 € support breached during the session, below the three moving averages
The Safran share is down 1.27% at 271.10 €, among the largest declines in the CAC 40, while the Paris index is virtually stable.
The stock has broken through its lowest level of the last 30 sessions, at 271.80 €, a former support that has become potential resistance to the upside, and is trading slightly below at 270.70 € at the latest reading. It is trading well below its MA20 (gap of 12.28%), its MA50 and its MA200, which places the price in a configuration of established decline.
The RSI at 21 signals an oversold configuration, following a decline of 13.36% over the week. The next identified threshold in the data is support at 265.20 €. This pullback extends the 8.5% fall from October 23, the day of the publication of third quarter revenue figures.
Goldman Sachs and Citi lower their price targets by 5% to 10%
Two research firms revised their target today. Goldman Sachs is lowering its target from 380 € to 360 €, with a buy rating, which leaves a potential of approximately 33% compared to today's price. Citi is reducing it from 345 € to 310 € and maintains a neutral rating, or approximately 14% above the current price.
Safran nevertheless confirmed on October 23 all of its annual targets, which were raised in July, but the growth in spare parts for civil engines is slowing: +29.3% in the first quarter, +17.0% in the third quarter. The group has also completed its share buyback program of 375 million euros, announced on September 18.
