SES Shares Decline by 2%, Extending Weekly Downturn
The stock of the Luxembourg-based satellite operator continues its correction in early afternoon trading, within an otherwise positive Parisian market. The decline follows a drop that began earlier in the week, after several weeks of sharp rises that had propelled the stock to a multi-year high.
A Marked Consolidation Bringing the Stock Below its 20-Day Moving Average
SES is down 2% at €8.34, while the SBF 120 is up by 0.83%. The decline brings the weekly drop to 11.46%, following a rally that had pushed the stock to €8.65 at the end of May. Over three months, the performance remains solid, at over 26%, and rises to 64.33% on an annual basis. The price has slightly fallen below its 20-day moving average (MM20) at €8.43 (a gap of -1.07%), a short-term signal that breaks the momentum of the recent sessions. The underlying structure remains bullish: the 50-day moving average (MM50) at €7.30 and the 200-day moving average (MM200) at €6.39 are still well below the current price, with respective gaps of 14.25% and 30.52%. The RSI at 54 indicates a return to a neutral zone after the overheating episode that accompanied the late May peak.
Barclays Raises Its Target from €6 to €8.80, Close to the Current Price
Barclays has raised its price target from €6 to €8.80, accompanied by a 'market weight' rating. The new target is about 5.5% above the current price, reflecting the accelerated revaluation of the stock since the beginning of spring. Analysts' opinions remain a benchmark for gauging the residual potential after the rally. On the commercial side, the agreement with the Mexican airline Viva, announced on June 1st, involves equipping 60 Airbus A320s and 40 A321s with multi-orbit connectivity. The contract expands the operator's footprint in the promising segment of in-flight connectivity, following the integration of Intelsat. The next resistance level identified is at €9.89; this level has not been recently breached.
