Saint-Gobain Shares Drop by 4.5%, Among the Lowest in the CAC 40
The construction material manufacturer's stock experiences a sharp decline at mid-session, in a Parisian index heavily oriented downwards. This movement erases the rebound that began at the end of June and comes after an adjustment in ratings by two brokerage houses. The stock joins the lower rankings of the CAC 40 values.
A Drop of Over 4% Sends the Stock Among the Biggest Declines in the CAC 40
Saint-Gobain shares are down 4.28% at €75.12 at midday, compared to €78.48 the previous day. The stock is among the largest declines in the CAC 40, as the Parisian index loses 2.19% in a session amid renewed geopolitical tensions in the Middle East. The VIX jumps over 19% to 18.58, reflecting increased nervousness in financial markets. Today's decline brings the weekly performance to -5.1%, and erases most of the rebound achieved at the end of June when the stock had broken its resistance at €79.76.
The drop pushes the price below its three moving averages: the MM20 at €78.38 (a gap of -4.16%), the MM50 at €77.34, and especially the MM200 at €81.80, now more than 8% above the current price. The RSI at 50 remains neutral, indicating that today's correction has not yet pushed the stock into an oversold zone. The technical support at €73.28 becomes the next numerical marker to watch.
Oddo BHF Lowers Its Price Target to €100 While Maintaining a Positive Outlook
In terms of analyst opinions, Oddo BHF reduced its target from €110 to €100 yesterday, while maintaining its Outperform rating. CIC Market Solutions also confirmed its Buy rating and target at €100, also on July 7. Despite Oddo BHF's revision, both targets offer a potential upside of about 33% from the current price.
On the macro level, the construction sector remains weakened in France (construction climate at -18.2 in June, order books at -33, housing permits down 5.5% over twelve months), an environment still unfavorable to the group despite its refocusing plan. The sale of the Dahl activity in the Nordic countries to Kesko for €1.518 billion, announced in mid-June, illustrated the continuation of the strategic Lead & Grow plan. In the short term, the behavior of the stock around the technical support of €73.28 will be a key technical marker for the next sequence.
