Thales Shares Drop 3% and Mark the Lowest Point on the CAC 40
The defense electronics group experiences a significant downturn in the Paris market, moving against a flat Parisian index. The drop follows a downgrade in target price by a major Swiss broker, as the stock approaches a technical support level that has been monitored for several sessions.
A Drop that Isolates Thales at the End of the CAC 40 Following UBS's Review
Thales shares fall 3% to €226.70, marking the lowest point on the CAC 40 while the index remains stable at 8,264.31 points. This movement follows the reduction of the target price by UBS, from €390 to €330, while still maintaining a buy rating. The revised target still offers a theoretical potential of nearly 46% compared to the current price. BofA Securities, on the other hand, set a target of €293 the day before, while keeping its opinion under review. Today's decline more than erases the previous weekly rebound and brings the three-month loss to over 16%, with the value still affected by the gradual fading of the geopolitical premium granted to defense stocks since the start of the summer.
A Return to the Support Level at €219.40 Under Bearish Moving Averages
The decline brings the stock back to its technical support at €219.40, which was previously breached at the end of June during the last wave of selling, before a rebound that had pushed the price up to €239.60. The price is now trading below its three moving averages, with a gap of -2.17% from the MM20 (€231.73) and -7.45% from the MM200 (€244.94), a configuration that indicates a deterioration in the medium-term trend. The RSI at 43 remains in a neutral zone, without any excess signal, leaving the margin entirely dependent on the support holding. As a reminder, the exceptional charge of €450 million related to the termination of the F126 frigate program was published on July 3, accompanied by a raise in annual targets. The next milestone to watch is the stock's behavior around €219.40.
