Saint-Gobain Shares Bounce Nearly 5%, Boosted by Overall Market Improvement
The construction materials manufacturer marks a sharp rebound in session, with the CAC 40 significantly up at midday. The stock is recovering after several challenging weeks, as oil prices drop and European indices brighten. The session, however, is accompanied by a new cautious move from analysts.
Saint-Gobain Rebounds with the CAC 40 and Recovers Its Short Moving Averages
Saint-Gobain shares are up 4.67% at €76.70, among the top gainers in the CAC 40, while the Paris index is up 1.91% and the SBF 120 is up 1.85%. The rebound occurs alongside a marked easing of Brent, which falls more than 5% to $88.29/barrel amid hopes of de-escalation between Washington and Tehran. The context is mechanically favorable to the group, whose energy and logistics costs weigh on margins. The stock passes above its MM20 (€75.88) and MM50 (€76.29), but remains nearly 8% below its MM200 at €83.04, reminding of the magnitude of the decline over a year (-22.81%).
The RSI at 42 remains neutral, without extreme signals. Over the week, the stock is almost stable (-0.39%), proof that today's rebound erases a recent decline without reversing the underlying trend. The European construction environment remains degraded (construction climate in France at -17.2 in May, production down 2.8% year-on-year), which continues to inform the caution of operators in the sector. As a reminder, the group finalized in early June the divestiture of HKO, its high-temperature insulation activity, as part of the refocusing planned by the Lead & Grow plan.
UBS Lowers Its Target to €70, as ECB Raises Rates
On the analysts' side, UBS lowers its price target from €75 to €70 this Friday and maintains its sell rating. The new target is about 9% below the current price, reflecting a still cautious view from the research firm on the stock, contrary to today's technical rebound. This move follows the revision made by Deutsche Bank in mid-May, which was also accompanied by a decline in the stock.
The ECB has also raised its three key interest rates by 25 basis points this Friday, bringing the deposit rate to 2.25%, the first increase since September 2023 in a context of Eurozone inflation at 3.2% in May. The institution has also revised down its 2026 growth projection to 0.8%, an unfavorable signal for stocks exposed to the European construction cycle. The technical resistance threshold identified is at €80.24, about 4.6% from the current price.
