Safran's Stock Falls 8.58% in a Week Despite Raised Target to €360
Safran's stock significantly declined this Thursday midday, dropping 2.71% to €280.30 amidst widespread tension on European markets. The CAC 40 is down by 0.99% during the session, while the SBF 120 loses 1.01%. The weekly decline in the stock now stands at 8.58%, bringing the three-month fall to 6.35%.
Technical Analysis: Safran's Stock Under Pressure
Safran's stock price is now below all its key moving averages: the 50-day moving average at €315.83, and the 200-day at €297.07, both significantly above the current level. This positioning reflects a bearish momentum that has intensified in recent weeks. More notably, this Thursday, the stock is hovering around its identified support level at €281.60, a technical level which the price temporarily breached, dropping to €280.30. A sustained break below this threshold could pave the way for further decline towards the lower Bollinger band at €274.39. The RSI, at 35, is approaching the oversold territory (below 30), indicating strong selling pressure, although not yet signaling an imminent reversal. In the sector, other major European industrial stocks are showing comparable declines during the session: Airbus is down 2.53% and Schneider Electric is down 2.42%.
Market Outlook and Analyst Confidence
Despite the current downturn, investment bank Berenberg raised its price target on Safran from €350 to €360 on Monday, March 24, while maintaining a buy recommendation. At the current price of €280.30, this target implies a potential revaluation of about 28%, a significant gap that reflects the analyst's confidence in the aerospace and defense group's fundamentals over the medium term. Regarding the schedule, investors are looking forward to the release of the first quarter 2026 results, scheduled for April 23, followed by the annual general meeting set for May 21. These events will be important milestones to assess the operational trajectory of the group, especially in an environment characterized by rising oil prices — with Brent crude at around $106 per barrel this Thursday — and ongoing geopolitical tensions in the Middle East. Despite everything, the stock maintains a positive performance of 10.4% over the year, reminding of the significant bullish run that preceded the current correction phase.
