Safran Stock Plummets 4% and Loses Its Record, Weighed Down by Middle East
The aerospace engine manufacturer undergoes a significant correction during the session after setting historical records last week. The stock is among the largest declines in the CAC 40, in a Parisian market significantly retreating amid renewed geopolitical tensions in the Middle East.
A Drop That Brings the Stock Back to Its 20-Day Moving Average
Safran stock loses 4.09% at €333.00, down from €347.20 the previous day. The stock is among the largest declines in the CAC 40, which is down 2.21% at the same time. The movement occurs in a climate of renewed tensions after US strikes against Iran and Tehran's claimed retaliation against facilities in Kuwait and Bahrain, while the VIX jumps more than 19% to 18.55.
The correction brings the price back to its exact 20-day moving average (€332.34), after a rally that had taken it to €360.80 last Friday, a historical record. The RSI at 64 moves out of the tense zone without tipping into an oversold configuration, while the price maintains a gap of more than 9% above the 50 and 200-day moving averages, both close to €305. Today's decline brings the weekly performance into negative territory (-3.48%), but the monthly gain remains above 11%.
Two Analyst Target Adjustments Maintain a Buy Rating on the Stock
On the analyst front, the last two referenced interventions date from July 6 and are aligned. BofA Securities raised its price target from €330 to €395, confirming its buy opinion. CIC Market Solutions maintained its target at €355, also a buy. At current levels, these two targets offer an implicit potential between 6.6% and 18.6%.
This positioning of the analyst consensus contrasts with today's punishment, which is more about profit-taking than questioning the industrial case. The group has also recently multiplied announcements about its AASM Hammer munitions and its optronic joint venture project with Theon International. The €332 zone, corresponding to the 20-day moving average, will be watched for the continuation of the movement, with the technical support identified at €291.50 as the next bearish marker.
