Societe Generale's Stock Plummets by 5.5%, Becoming the CAC 40's Laggard
La Defense's bank suffers a session shock and finds itself at the bottom of the CAC 40, going against an already challenging market dynamic across the Parisian stock exchange. The drop occurs amid heightened geopolitical tensions between Washington and Tehran, heavily impacting European indices. This setback contrasts with the rebound observed in the stock over the past several weeks since spring.
A Significant Downturn Bringing the Stock Below its 20-Day Moving Average
Societe Generale's stock fell by 5.63% to €71.42, down from €75.68 the previous day. The stock is now the worst performer in the CAC 40, while the Paris index itself dropped by 2.19% and the SBF 120 declined by 2.10%. The fall is part of an environment of increased volatility, with the VIX jumping by 19.4% to 18.59, amid military escalations between the United States and Iran and a claimed Iranian retaliation in the Gulf. The movement erases part of the recent progress: the stock is down 7.69% for the week but still up 42.95% for the year. Today's decline brings the price below the 20-day moving average (MM20) at €73.00 (a gap of -2.16%), while the 50-day moving average (MM50) at €70.91 still holds slightly (a gap of +0.72%). The RSI at 64 exits its tense zone but remains in the buying territory, and the support at €66.46 is the next key graphical reference if the pressure continues.
Kepler Cheuvreux Raises its Target to €85 as the Stock Plummets
The paradox of the day lies in the coincidence between this drop and a positive shift in analyst opinions. Kepler Cheuvreux upgraded its rating from 'hold' to 'buy' on July 7, raising its price target from €70.70 to €85.00, which represents a potential of nearly 19% compared to the current price. Based on the expected earnings per share, the stock is trading at about 9.3 times the earnings for the current fiscal year according to the consensus of surveyed analysts. Operationally, the group launched a senior preferred bond issue in two tranches with maturities in 2028 and 2031 on July 1, as mentioned in a recent communication on its long-term financing program. The interest rate environment remains supportive for the bank's interest revenues, with the Euribor 3M at 2.34% in June, up 32 basis points year-on-year. The performance of the MM50 at €70.91 will be crucial for the short-term technical structure.
