SES Shares Drop Nearly 5% After a 75% Yearly Rally
The Luxembourg-based satellite operator undergoes a significant correction mid-session, following several weeks of soaring performance that had brought it to a multi-year high. This movement contrasts with the generally positive Parisian market. The session includes a target price revision by a major broker.
SES Shares Decline Midday Despite Market Gains
SES shares fall 5.09% to €8.77 at midday, while the SBF 120 index is up 0.60% and the CAC 40 gains 0.75%. The stock is among the largest declines in the broader index, contrary to the general trend. This correction follows a spectacular rally that increased the share price by more than 25% over the month and 75% over the year. Today's decline does not undermine the underlying momentum: the three-month performance remains close to 40%. On the analyst front, Barclays raised its price target from €6.00 to €8.80 this Tuesday, while maintaining a 'market weight' rating. The new target closely aligns the potential with the current price, after the recent stock performance. In other news, SES announced yesterday an agreement with the Mexican airline Viva to equip 100 Airbus planes with satellite in-flight connectivity. The deployment will cover 60 A320s and 40 A321s in the coming years.
Stock Remains Well Above Its Three Moving Averages Despite the Pullback
In terms of indicators, today's pullback does not alter the medium-term bullish configuration. The price at €8.80 is still significantly above the MM20 at €8.32 (+5.83%), the MM50 at €7.19 (+22.46%), and the MM200 at €6.36 (+38.44%). The RSI at 68 moves out of the overbought zone where it had been deepening in recent sessions, indicating a normalization after the recent surge. The technical resistance identified at €9.89 remains out of reach, while the support at €6.36, coinciding with the MM200, provides a comfortable cushion. The session illustrates targeted profit-taking on one of the SBF 120's best-performing stocks since spring. The next operational milestone will be the realization of the contract with Viva, with initial deployments expected in the coming years.
