Saipem S.p.A. (SPM), a leading player in the oil and gas services sector, is experiencing a notable shift in its stock performance as recent gains face a critical test. After an impressive rally that saw the stock climb for eight consecutive sessions and surge nearly 13% over the past two weeks, Saipem shares are now encountering resistance, prompting investors to reassess the sustainability of the recent bullish momentum.
The stock closed at €2.42 on June 10, 2025, after a robust run that defied broader market volatility. This streak, however, has led to a technical recalibration, with analysts downgrading their outlook from a “Buy” to a more cautious “Hold/Accumulate.” The rationale behind this shift is rooted in the expectation of heightened volatility and the recognition that such extended rallies are often followed by short-term corrections.
Trading volume has also spiked, with 67 million shares exchanging hands in the last session, signaling increased market activity and a potential inflection point for the stock’s near-term direction.
Despite the current pause, Saipem’s underlying fundamentals remain strong. The company reported first-quarter revenues of €3.52 billion, marking a 15.5% year-over-year increase, and net profit jumped 35% to €77 million.
Operating cash flow accelerated to €395 million, and the order backlog stands at an impressive €33 billion, providing medium-term visibility and supporting management’s reaffirmed 2025 guidance for €15 billion in revenue and €1.6 billion in EBITDA.
Technical indicators present a mixed picture. While moving averages and recent price action suggest ongoing support for the stock, momentum oscillators point to a potential overbought scenario, justifying the more measured analyst stance. The absence of immediate resistance above current levels could allow for further gains, but the risk of a short-term pullback remains elevated as the market digests recent advances.
Looking ahead, Saipem’s strategic execution, robust backlog, and strong cash generation position the company favorably within the oil services sector. However, investors should remain vigilant as the stock tests the durability of its bullish trend amid broader sector and market dynamics. The coming sessions will be pivotal in determining whether Saipem can consolidate its gains or if a corrective phase is on the horizon.
