Safran stock breaks through its €302 floor and falls 8.5%
The aerospace engine manufacturer is penalized during the session, in a CAC 40 that is also declining. The stock is reacting to the publication of its third quarter results, released this morning, and its fall makes it one of the worst performers on the Paris index.
A decline of 8.5% that breaks through a floor held for one month
The Safran stock is falling 8.48% to €276.40, after closing at €302 the previous day, while the CAC 40 declines by 0.77%. This €302 level, which had served as a floor over the last 30 sessions, has just been broken downward and is becoming a resistance level. The price is now significantly below its 20-day moving average (gap of 13.19%) and its 200-day moving average (gap of 12.94%), while the RSI at 20 reflects a marked selling exhaustion.
The next support level is at €265.20. Safran ranks 39th out of 40 in the CAC 40, just ahead of Kering, which is losing nearly 11.8%. The decline has reached nearly 13% over the week and nearly 17% over one month.
Revenue of €9 billion and objectives confirmed, but spare parts growth slowing
Safran published this morning adjusted revenue of €9,003 million in the third quarter, up 14.7%, and confirms all of its annual objectives raised in July. The publication nevertheless reveals a slowdown in growth of spare parts for civil engines: +29.3% in the first quarter, +26.7% in the second, then +17.0% in the third (in dollars). This business segment continues to grow by 23.9% over nine months, based on an annual assumption of approximately 25% retained by the group.
On the analysts' side, CIC Market Solutions maintains its buy rating with a price target of €378, representing 36.8% above the current price. The €375 million share buyback announced on September 18 is being executed at approximately 89% as of October 20.
