Saint-Gobain Rises 2.19%, Boosted by Brent's Drop, Marking +7.24% for the Week
The construction materials manufacturer continues its recovery during the session and is among the leaders of the CAC 40. The stock extends the rebound that began last week as the barrel continues to decline and European indices are on the rise. However, the stock remains heavily marked over long horizons.
Saint-Gobain Gains Over 2% and Moves Above Its Short-Term Moving Averages
Saint-Gobain shares have advanced 2.19% to €79.40, among the strongest gains in the CAC 40 at midday. The stock records a weekly gain of 7.24%, extending a rebound that started last week, after having gained nearly 8% the previous week. The rebound aligns with a persistent easing of Brent, which is down 2% in the session at $91.84 and has lost nearly 17.5% since May 19. The reduction in energy and logistics costs mechanically relieves manufacturers in the materials sector. On a technical level, the price clearly surpasses its 20-day and 50-day moving averages, located at €76.60 and €75.08 respectively, representing a positive gap of 3.66% and 5.75%.
BofA Securities Lowers Target to €110 While Maintaining Buy Rating
From the analysts' perspective, BofA Securities adjusted its price target yesterday from €115 to €110, while maintaining a buy recommendation. The new target implies a theoretical potential of about 38.5% compared to the current price. The session is set in a supportive index environment, with the CAC 40 gaining 0.99% and the SBF 120 advancing 0.96%. Despite the recent rebound, the stock is still trading 5.62% below its 200-day moving average (€84.13), which materializes a still bearish long-term trend (-20.72% over one year, -7.93% over three months). The construction sector's economic environment remains degraded in Europe, with a construction climate of -17.2 in France and -5.2 in the European Union in May. The resistance zone at €81.44 remains the short-term technical reference level.
