SES Shares Gain 3% Defying a Nearly 2% Drop in the CAC 40
The Luxembourg-based satellite operator continues its recovery in the session, going against a heavily retracted Parisian market amid renewed tensions in the Middle East. The stock confirms the upward trend that began in late June, as a major brokerage house has just downgraded its rating on the stock.
A Rebound that Widens the Gap with Key Moving Averages
SES shares are up 2.58% to €7.96 as the close approaches, while the SBF 120 is down 1.83% and the CAC 40 is down 1.88%. The stock ranks among the largest gains in the broader index, in a session where oil and oil service stocks lead after a new military escalation between Washington and Tehran. Over the week, the stock has gained more than 11% and shows a nearly 22% increase over three months. The rebound brings the price above its 50-day moving average (€7.91), just breached, while the 200-day moving average at €6.59 provides a comfortable cushion of nearly 21%. The RSI at 51 returns to the neutral zone, after several swings between overselling and rebounding since the end of June. The movement follows the announcement on July 7 of a five-year framework contract by the group's defense subsidiary with the US Space Force, covering Ku-band satellite services.
Barclays Downgrades Its Rating as the Stock Recovers 30% Over Three Months
On July 6, Barclays lowered its rating on the stock to 'underweight' with a price target set at €7.05. This level is about 11% below the current price, reflecting the British house's cautious view on the remaining potential after the spectacular rebound in the spring. The position is contrary to the market movement: the stock has rebounded nearly 20% since the lows of June 25, when the downward spiral that began at the end of May had erased part of the rally that started in the first quarter. Over twelve months, the stock still shows a gain of more than 27%. The session illustrates the tension between a rebuilt technical momentum and a consensus that begins to integrate profit-taking. The resistance threshold at €9.89 remains the next upper limit identified in market data.
