Schneider Electric stock breaks through its 254.55 € support despite a third quarter above expectations
The equipment manufacturer from Rueil-Malmaison is trading slightly lower, while the CAC 40 advances. The group published quarterly revenue above expectations on Friday and raised an annual target, but the stock remains below its main moving averages.
A support breached during the session, then recovered, despite revenue above consensus
The Schneider Electric stock declined 0.78% to 256.00 € in early afternoon, ranked 39th out of 40 in the CAC 40 according to the session ranking, in an index gaining 0.4%. The stock broke through its 254.55 € support level during the session down to a low of 251.95 €, before rebounding above it. It remains 4.52% below its 200-day moving average (268.12 €), after a decline of 7.01% over one month. Third quarter revenue came in at 11,460 M€, up organically by 16.9%, above the high end of the consensus range (10.94 to 11.36 billion €, average at 11.14 billion €).
The group also raised its organic growth target for adjusted EBITA, now ranging between 18% and 21%. This publication follows a series of declines, including nearly 10% on October 5, the day of the PTC acquisition announcement.
A buy recommendation reiterated by CIC Market Solutions, with a price target of 345 €
During the day, CIC Market Solutions confirmed its unchanged price target of 345 € on the stock, with a buy rating. This target implies potential upside of approximately 35% compared to the current price. The RSI at 35 reflects a stock that has lost ground over several weeks. The 254.55 € level remains one to watch in the coming sessions.
