(Boursier.com) — THE TREND
The Paris stock market remained close to its records on Tuesday, with the CAC40 showing a slight increase of 0.08%, closing at 7,574 points. The decline in inflation is confirmed in the euro zone, while the region’s annual inflation rate was confirmed this morning at 2.4% by Eurostat, compared to 2.9% in October. A year earlier, it was 10.1%. Annual ‘core’ inflation, the most closely monitored by the ECB, stood at 3.6% in November, compared to 4.2% the previous month…
Three members of the Governing Council of the European Central Bank (ECB), including Bostjan Vasle, however, yesterday judged it “premature” to talk about a rate cut. The latter further believes that the current strong easing in the bond market could be counterproductive, leading to a prolonged cycle of high rates to bring inflation down to 2%. Enough to legitimize a pause in the bullish rally of the stock markets in Europe…
The European Central Bank (ECB) should lower its rates “at some point” in 2024 after leaving them at a plateau, the time to see that its previous increases have indeed produced their effects on inflation, declared François Villeroy de Galhau . “Between the rise in rates, which, barring any surprises, is over, and the fall, which should take place at some point in 2024, there is a plateau”, underlined the governor of the Bank of France on ‘France Inter’ .
The euro is getting closer to 1.10/$ this evening, while oil rises to 79.35$ per brent.
RISING VALUES
Innate Pharma climbs 5%. Innate Pharma and Sanofi (+0.3%) announced that the Sanofi group had exercised its licensing option for an NK Cell Engager program in solid tumors, stemming from the ANKET(R) platform (Antibody-based NK Cell Engager Therapeutics) of Innate Pharma, in accordance with the terms of the licensing agreement entered into in December 2022. Following a period of research collaboration, Sanofi will be responsible for the development, manufacturing and marketing of the products. Sanofi retains a license option for an additional ANKET(R) target in accordance with the license agreement. As part of the licensing agreement concluded in December 2022, Innate will receive a payment of 15 million euros for the exercise of this option.
Virbac jumps 12%, investors welcoming the increase in annual targets… Taking into account the “significant rebound in sales” observed in the third quarter and which continues in the fourth quarter, a higher margin on production costs than expected as well as the delay in certain expenses, particularly R&D (increase in the ratio of R&D expenses to turnover of only approximately 0.5 points compared to 2022), the group now expects to achieve organic growth around 4% compared to 2 to 4% previously. The adjusted operating margin is anticipated at around 15% compared to 13.5 to 14.5% so far. Furthermore, at constant exchange rates, the net cash position at the end of December 2023 should improve by almost 50 ME compared to the same position at the end of December 2022, excluding acquisitions and the impact of the share buyback plan. In 2024, the group at this stage envisages growth in turnover at constant rates and scope of between 4 and 6% and a ratio of current operating income before depreciation of assets resulting from acquisitions (adjusted Ebit) to turnover. business around 15% at constant exchange rates.
Worldline rises by almost 6.6%. Bryan Garnier raised his recommendation to ‘neutral’, targeting 19 euros.
Vetoquinol : -6% followed by SMCP (-5%), Innate, AB Science
Dried : -4.5% followed by LFE, Antin, Assystem
Air France KLM : +3.5% with Vallourec, SES, Mercialys, Thermador, Verallia
Equasens : +2.5% with Eurazeo, Clariane, Eurofins, Nexans
STEF : +2% with TFF, Eramet, Carrefour,
M6 : +1.5% with Alstom, Neoen, Alten
FALLING VALUES
Casino falls by 8%. After jumping by almost 10% at the start of the session, the distributor’s stock now fell by 7% to 0.73 euros after being suspended on Monday. The Saint-Etienne group announced the sale of almost all of its hypermarkets and supermarkets to Intermarché and Auchan on the basis of a fixed enterprise value of 1.35 billion euros (excluding real estate). The transaction concerns 313 stores, which generated a total turnover of 3.6 billion euros in 2022. All employees of the transferred stores would be taken over by the Groupement Les Mousquetaires and Auchan. The proceeds of the operation will make it possible to support the planned financial restructuring, investment in the maintained scope, and social support for the employees concerned.
Fermentalg : -3.5% followed by Genfit (-2.8%) with Genfit (-2.8%) and Showroomprivé
Teract : -2.5% with Waga, Catana
Great gives up 1.7%. UBS downgraded the global specialist in electrical and digital building infrastructure to ‘sale’ while reducing its target from 108 to 82 euros. The bank cites limited growth potential, cyclical risks and a demanding valuation.
Cegedim : -1.4% followed by Solocal, Legrand
Esso : -1% with Nacon, Elior, Atos, Stellantis, SG, Capgemini
ArcelorMittal (unchanged). Oddo BHF (‘outperform’) returns to the file while US Steel will finally be bought by Nippon Steel. The group thus becomes the 3rd world producer of steel by combining the 14 Mt of US Steel with the existing 44 Mt and is getting closer to no. 2 ArcelorMittal with 69 Mt. The broker estimates that the market was relieved yesterday not to see ArcelorMittal go to the end of the US Steel deal. The group had indicated that it remained committed to maintaining share buybacks at 50% of its free cash flow and to maintaining an investment grade rating. However, an acquisition for $14.9 billion, in line with the amount paid by Nippon Steel, would undoubtedly have undermined at least one or even both of these objectives.