THE TREND
(Boursier.com) — After an ultimately very limited decline yesterday (-0.21%), caution remained in order on Tuesday with a stable CAC40 closing at 7,082 points. The Fed’s monetary policy committee began its discussions today and the markets expect tomorrow evening that the institution will slow its rate hike to a quarter of a point at the end of its monetary meeting. Investors will be especially attentive to the tone of the press release and the speech of Jerome Powell, the chairman of the Fed, on Wednesday evening. The Fedwatch barometer is now in this expectation oriented at 98.6% in the event of a rise of a quarter of a point…
“The risk to the Fed’s decision on Wednesday seems less to be that it raises its rate range another 50 basis points all at once (which would be a real shock to the markets) but rather that the The Fed is leaving the door open for further rate hikes after the first quarter to bring the final rate beyond 5%… Which would imply a 25 basis point hike in February, another in March and then another in May (no meeting in April). And this scenario is not priced by the markets and it would cause a rebound in the dollar and short rates, and a drop in the equity markets”, estimates Alexandre Baradez, head of market analysis at IG France.
Caution should also continue until Thursday when the ECB is expected with a further 50 basis point increase in its key rates. But there too, it is above all the continuation of the evolution of the rates which intrigues the investors… The euro is camped while waiting on the 1.08/$. Oil returns to $84 per Brent.
RISING VALUES
Seb (+8%) achieved sales of 7,960 ME in 2022, almost stable (-1.2%) compared to 2021 in published data and down 4.7% at constant exchange rates and perimeter. Seb confirmed its operating margin on activity target for 2022.
Euroapi (+7%) gradually restarted prostaglandin production at its Budapest site on January 19. As indicated to the market in its press release of December 7, 2022, EUROAPI has identified, during an internal assessment, certain deviations from good manufacturing practices regarding production documentation and has decided as a precautionary measure to proactively and temporarily suspend prostaglandin-related activities at its Budapest site.
Elior rises 5% withP&V, Vantiva
Wavestone (+4.3%) posted consolidated revenue of €139.1 million in the third quarter of its 2022-2023 financial year, up +14% over one year. At constant exchange rates and scope, quarterly revenue increased by +6%. At the end of the first 9 months of the financial year, Wavestone’s consolidated sales amounted to 376.2 ME, up +11%, of which +5% at constant scope and exchange rates. The objective of an annual turnover of more than 525 ME is reaffirmed, taking into account the consolidation of PEN Partnership and Coeus Consulting, with a current operating margin of around 15% over the financial year.
SES Imagotag : +3.5% with Genfit
Score : +2.5% followed by Stellantis,inventive, trigano, SG
Pernod Ricard : +2% with Nexans, Remy Cointreau
Valeo : +1.5% followed by Vilmorin, Atos, Mersen, BNP Paribas
Elis advance of 1.5%. The company specializing in the field of cleaning and hygiene achieved record 2022 turnover, at 3.821 billion euros, up +25.3%, including +21% organic. Elis highlights a recovery in the hotel industry, as well as sustained commercial activity, accompanied by price adjustments to offset the high inflation in energy costs. Management thus confirmed its annual objectives, namely a 2022 adjusted EBITDA margin of approximately 33%, an adjusted EBIT above €530 million, a net current result per share above €1.45.
Lagardere : +1% in the company of Michelin, Vicat, Orange
FALLING VALUES
M6 fell by 4%, but TF1 rose by 1.5%. Reverse paths that can be explained by a note from Barclays dedicated to the media sector in Europe. The bank says it hopes for a “calmer” 2023 for stocks in the sector and sees some value in the more cyclical names in the fund. It thus raises to ‘online weighting’ its opinion on the ‘one’ and raises its target price from 6.5 to 8 euros. The broker deems the risk/reward ratio relatively well balanced. Conversely, the broker degrades M6 to ‘underweight’ despite a target raised from 13.5 to 14.5 euros.
Esso : -4% with believe
FDJ : -3.5% followed byInfotel
Casino : -2.5% followed by Waga, Stedim,Amundi
Ubisoft loses another 1.5%. Jefferies lowered its recommendation to ‘underperform’ versus ‘buy’, with a target price cut from 52 to 17 euros.
Aubay : -1% with colas, Alstom, Saint Gobain, TotalEnergies, Thales, ADP and Liquid air