Safran stock tests its support at €271.80 before rebounding during the session
The aerospace engine manufacturer is seeking a foothold after a decline that has been extending since the publication of its third quarter results. It tested a technical threshold at the start of the session before recovering, as an announcement of an expansion project in Asia comes this morning.
A support level broken then recovered, with an RSI at 22 and a stock below its three moving averages
Safran gains 0.18% to €272.40 during the session, in a CAC 40 advancing by 0.89%. The stock broke through its support level at €271.80, down to a low of €270.40, before moving back above this level.
The movement is part of a sharp decline: the security is down 13.22% over a week and 18.2% over a month.
The RSI at 22 marks an oversold configuration, without predictive value. The price remains 11.08% below the 20-day moving average (€306.36) and 15.57% below the 50-day moving average (€322.64).
The last quarterly publication on October 23 had caused the stock to fall 8.5% during the session: today's session brings a calm without a return above these benchmarks.
An AI center in Singapore and two price targets revised downward before the weekend
On Thursday, Safran announced it had chosen Singapore for its new center of excellence in artificial intelligence, with the signing of an agreement protocol with the Singapore Economic Development Board.
On the analysts' side, two adjustments came down on Wednesday: Goldman Sachs lowered its target from €380 to €360 with a buy rating, and Citi adjusted its target from €345 to €310 while maintaining its neutral rating.
Goldman Sachs' target remains 32% above the current price, Citi's at approximately 14%. The group also completed a share buyback program of €375 million, executed at approximately 100% as of October 22. The support level at €271.80 was broken during the session, with the stock falling to a low of €270.40 before moving back above this level.
