Vicat Shares Drop by 3% and Break Through Support at €59.10
The cement company from Isère faces another challenging session in mid-morning, in a downward trending Parisian market. The stock is at the bottom of the SBF 120 and breaks a technical benchmark monitored over several sessions.
Support at €59.10 Gives Way During Session, Stock Reaches Its Recent Lows
Vicat's stock declines by 2.99% to €58.40 in mid-morning, marking one of the steepest drops in the SBF 120 as the broader index falls by 0.67%. This movement breaks through the technical support at €59.10, which has been tested several times in recent weeks, such as during the session on May 18 when the stock had previously broken this threshold. The price is now significantly below its moving averages, with a gap of 5.64% below the MM20 (€61.89) and 12.71% below the MM200 (€66.90). The RSI at 42 indicates a selling pressure that is setting in without reaching the oversold zone, consistent with a decline of nearly 8% over the week and more than 11% over the quarter.
A Decline that Stretches as Brokers Adjust Their Targets Since Late May
The session extends a trend that began in late May, when Citi lowered its price target to €65, triggering a 2.2% drop in the stock. Since then, the cement company has not found a lasting foothold, despite an aborted rebound attempt at the end of May on the MM20. Based on the expected earnings per share, the stock is trading at about 9.2 times the earnings for the current fiscal year and 8.2 times those for the next fiscal year, according to the consensus of analysts surveyed. The expected EPS growth from one fiscal year to the next is 12.6%. The sectoral context remains burdensome for cyclical stocks, in a session climate where European indices are falling and where the dollar holds its two-month highs after a strong US employment report. With the support at €59.10 now broken, attention turns to the stock's ability to regain its footing above this level in the coming sessions.
