Sodexo Shares Climb 4% Breaking Resistance
Midday trading sees one of the largest gains in the SBF 120 for the collective catering group, following a technical barrier breakthrough and an upgraded price target by a major broker. However, high short positions are still retreating over the month.
By midday, Sodexo shares have risen by 3.99% to €49.52, marking one of the strongest increases in the SBF 120 while the index itself fell by 0.28%. The stock has surpassed its resistance level of €47.88 during the session and remains above it, continuing a monthly rebound of 14.31%. The price has significantly exceeded its three moving averages, with a gap of 8.17% over the MM20 (€45.78) and 12.65% over the MM50 (€43.96). The RSI at 64 indicates the strength of the rebound without yet signaling overheating. However, the annual performance remains negative at -16.21%. Barclays raised its target from €42 to €46, maintaining a 'market weight' opinion. The day before, Bernstein had lowered its target from €43.30 to €42.20, with a 'market performance' rating. Both new targets remain below the current price.
Short Sellers Reduce Their Bets, with the Rio Tinto Contract in the Background
According to reviewed declarations, eight funds hold a combined net short position of 6.01% of the capital. The bearish bet remains high but has lightened: down 0.44 points in thirty days after peaking at 6.45%. This level indicates that institutional investors continue to position against the stock, contrasting with today's dynamics; part of the short covering may indeed amplify occasional rebounds. This should be monitored without drawing isolated conclusions. Fundamentally, the group continues to secure long-term contracts. The seven-year contract signed with Rio Tinto in the Pilbara, revealed on May 5th, is set to start in June 2026 and highlights the group's positioning in mining Facilities Management. The session thus marks a clear technical break after several weeks of prices being capped under the MM200 at €46.83. Upcoming analyst positions will help assess whether this breakthrough is part of a more sustained trend.
