Safran stock rebounds above its 20-day moving average, leading the CAC 40 gainers
The aerospace and defense engine manufacturer's shares gained ground on Wednesday, ranking among the strongest gains in the CAC 40 as the index remained nearly flat. This rebound comes as Safran announced a stake acquisition in Akira, a specialist in propulsive technologies, and following a target price upgrade by Bernstein.
Bernstein raises its target to €420 as the stock rebounds above its 20-day moving average
Safran gained 0.9% to €335 during the session, after closing at €332 the previous day. The stock rebounded above its 20-day moving average at €332.08, a threshold it had lost during the weeks of pressure in the past month. It remains, however, below its 50-day moving average at €339.11, which represents the next technical hurdle to overcome to confirm the recovery.
The RSI at 49 is neutral, showing no signs of exhaustion or overbought conditions, which leaves room before the advance encounters a major technical constraint. On the analyst side, Bernstein raised its price target on Tuesday, September 22, from €410 to €420, maintaining its outperform rating. Relative to the current price of €335, this target represents an upside potential of around 25%.
A stake acquisition in Akira expands Safran Corporate Ventures' propulsive activities
On the corporate front, Safran announced on September 22 a stake acquisition in Akira through its subsidiary Safran Corporate Ventures. The company thus joins a financing round bringing together other defense and public funding players. Akira develops and prototypes propulsive technologies, a field that aligns with the group's strategic scope.
This transaction adds to the €375 million share buyback program announced on September 18, which provides structural support for the stock. Over the week, Safran posted a gain of nearly 4%, partially erasing the 2.5% decline recorded over the month. Resistance at €363.60 remains the technical level to watch in the coming weeks.
