Worldline Gains 7%, Cumulative Short Positions Remain High
The European payment specialist rebounds sharply midday, following a session of significant decline. The stock benefits from a technical buyback atmosphere as analysts adjust their models to the new stock market reality of the asset. However, short sellers remain solidly entrenched in the capital.
A Technical Rebound Places Worldline Among the Top Gainers of the SBF 120
Worldline's stock rose 6.91% to €0.3465 during the session, among the top gainers of the SBF 120, while the broader index increased by 0.57%. The stock ranks in the top three, behind STMicroelectronics and Atos. This surge comes the day after a 5.3% decline, in a movement of technical buybacks on stocks that have been heavily penalized in recent months. The rebound mechanically places the price above its short-term moving averages, with a positive gap of 15.5% relative to the MM20 (€0.30) and 19.5% relative to the MM50 (€0.29). The MM200, at €1.53, remains distant, illustrating the extent of the long-term disconnection, with the stock still down 74.35% over the year. The RSI at 54 indicates a situation that has returned to a neutral zone, without directional excess. The support at €0.24 held during the declines in May, while the resistance at €0.36 is immediately in contact with today's price.
Berenberg Lowers Target from €4.00 to €0.40; Cumulative Short Positions Rise to 3.6%
Berenberg updated its target on Worldline yesterday, lowering it from €4.00 to €0.40, while maintaining a buy rating. The adjustment reflects the drop in price over the past year and brings the target closer to the current level, offering a theoretical potential of about 15% on today's price. According to the consensus of analysts surveyed, the stock is trading at approximately 2.1 times the expected earnings for the current fiscal year. Regarding short positions, four funds cumulatively hold 3.60% of the capital sold short according to reviewed declarations, an increase of 0.95 points over thirty days. This ongoing rise reflects a persistent bearish pressure from institutional investors positioned against the stock, although it cannot be interpreted as a reversal signal on its own. Strategically, the sale of MeTS to Magellan Partners was finalized on Monday for €280 million, the latest step in the North Star 2030 plan focusing on payments in Europe. The resistance at €0.36 remains the next technical hurdle to watch in the upcoming sessions.
