CGG shares lost over 10% in early trading on Tuesday, the second biggest drop on the SBF 120 behind Atos, as Société Générale lowered its recommendation on the stock from 'buy' to 'sell'.

The French bank also reduced its price target from 0.9 to 0.4 euros.

This sanction is all the more brutal as the market had reacted well, ten days ago, to the publication of the 2023 annual results of the group specialized in oilfield services.

The company's management team took the opportunity to express optimism for the 2024 and 2025 financial years, against a backdrop of renewed investment in the sector.

CGG also stated that it expected its net cash position to improve to $100 billion by 2025, and reassured investors of its ability to pay down debt.

The share price is now down around 15% year-to-date, compared with a symbolic gain of 0.1% for the STOXX Europe 600 Oil & Gas index.

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