Valeo shares decline 22.5% over one month but recover with RSI at 31

A rebound that leaves the stock far from its moving averages

Valeo shares gain 1.94% to €11.54, while the CAC 40 is virtually unchanged (-0.04%). This improvement remains modest compared to the 22.32% decline over one month and nearly 15% decline over the week.

The price remains well below its 20-day moving average at €13.33, representing a gap of 13.4%, and the RSI at 31 reflects seller exhaustion after this slide.

A 2% rebound compensates for only a small fraction of this monthly decline. The stock is in the top tier of the SBF 120, where it holds an honorable rank, while Rémy Cointreau closes the index.

Net declared short positions reach 10.7% of capital, spread among eight funds, down 0.61 percentage points over thirty days: this elevated level shows that some market participants remain positioned against the stock, even if downward pressure has slightly diminished.

Two target revisions following quarterly results with no change in course

On October 22, upon publication of its Q3 2026 results, Valeo maintained its annual targets, with revenue expected between €20 and €21 billion.

Original equipment sales declined 3.8%, in a global automotive market down 1.6%. The group also cited expected return to growth in 2027 as a positive factor.

Among analysts, Evercore ISI lowered its target on October 26 from €15 to €12 and downgraded its rating from outperform to in line, while Deutsche Bank confirmed its hold rating by reducing its target from €13 to €11. These new targets, €12 and €11, now bracket the daily price (€11.54).

The stock trades at approximately 7.5 times expected earnings for the current fiscal year. The support level at €11.32, the previous day's closing level, represents the nearest zone to the current price.