Vicat Stock: Citi Lowers Price Target to €65, Shares Drop 2.2%
The cement company from Isère sees a significant decline at mid-session, following a downgrade in recommendation. The stock is among the largest declines in the SBF 120, while the broader index moves in slightly negative territory.
Citi Shifts to Neutral and Reduces Price Target from €72 to €65
Vicat's stock falls 2.17% to €63.10, down from €64.50 the previous day. Citi has lowered its price target from €72 to €65 and shifted to 'neutral'. The new target offers only about a 3% potential upside from the current price. The stock is among the biggest losers in the SBF 120 this Thursday, while the index itself is down only 0.26%. This movement comes after a quarterly report in early May was well-received, which had helped the cement company's stock rebound to €62.50 amid an 8.5% increase in first-quarter revenue, driven by prices in Europe and California. Today's decline marks a break from the positive momentum of the past two weeks, where the stock had gained nearly 3.5% over seven days. However, the three-month performance remains negative at -11.4%. According to the consensus of analysts surveyed, the stock is trading at about 9.6 times the earnings expected for the current fiscal year and 8.8 times those of the next fiscal year, with an expected EPS growth of 9.6% year-over-year.
The Stock, Touching Its 50-Day Moving Average at €62.99, Remains Distant from Its Long-Term Moving Average at €66.75
Today's session brings the stock back to its 50-day moving average at €62.99, which is only a 0.17% difference from the current price. Vicat has limited room above the 20-day moving average at €61.88, but remains below its 200-day moving average at €66.75 (a gap of -5.47%), which now represents the main zone of technical resistance. The RSI at 57 indicates a neutral momentum, without significant buying or selling pressure. The support level identified at €59.10, which was briefly breached at €58.80 on May 18 before the stock rebounded, remains the low marker to watch if the downward movement continues. In the background, Brent crude has fallen 5.08% to $94.52 and has lost nearly 15% since May 18, amid negotiations between Washington and Tehran. The next technical milestone revolves around €62.99: maintaining above the 50-day moving average would stabilize the short-term configuration, while a break below could reopen the path towards the support at €59.10.
