THE TREND
(Boursier.com) — The Paris stock market spent the day slightly lower on Monday and the negative orientation of Wall Street this afternoon did not upset the trend as the rally linked to the best inflation figures starts to spin out. The CAC40 ended down 0.15% at 6,634 points. This good resilience of European markets was reinforced by producer prices in Germany, which recorded an unexpected drop in October, mainly due to a decline in electricity and natural gas prices. This is the first one-month drop since May 2020 and it gives hope of seeing a slightly more moderate rise in key rates at the next ECB meeting in mid-December.
The news was less favorable in China where several large cities recorded a further increase in COVID-19 cases, leading local authorities to introduce new health restrictions, particularly in Beijing where residents of the most populous district no longer have the right to leave their homes. This information is undermining hopes for a rapid easing of the government’s anti-COVID strategy and fueling fears of a global recession. On that front, Wednesday’s release of the minutes of the Federal Reserve’s latest meeting may shed additional light on the level to which officials plan to raise interest rates.
RISING VALUES
* Ipsen gained 4.9% to 109.1 euros. JP Morgan raised its target price to 115 euros against 91 euros previously.
* Danone rises 1.5% to 50.64 euros on Monday, while the broker Jefferies is still buying the food group with an adjusted price target of 63 to 56 euros.
* TFF Group (+3% to 36.3 euros) announced the conclusion of a partnership agreement resulting in the acquisition of a 51% stake in the capital of Goulard & Fils. This family company established in Charente Maritime since 1988 carries out logging, sawmill and stave milling activities. This partnership with Goulard & Fils, historical and exclusive supplier of French oak to Stavin, a subsidiary of TFF Group, enables Stavin to secure its supplies. Goulard & Fils generates revenue of around €2 million, nearly two-thirds of which with TFF Group.
FALLING VALUES
* Vallourec fell 13% below 10 euros after the third quarter accounts marked by negative cash flow. The financial outlook for 2022 is however confirmed: the EBITDA is expected between 650 and 750 million euros. Free cash flow in the second half of 2022 will be positive, thanks to the strong performance expected in the fourth quarter and capital expenditure should amount to around 200 million euros.
* Atos (-2.5% to 10.2 euros) signed a new contract qualified as major with the German Siemens. Atos will ensure the provision of SIAM services and accelerate the digital transformation of Siemens. The Frenchman will work closely with Siemens and a multi-source ecosystem to deliver next-generation integration and orchestration services through its Atos SIO Bridge solution.
* Alstom yields 1% to 24.3 euros. JP Morgan is ‘overweight’ on Alstom with an adjusted target of 30 to 35 euros.
* Lysogen (-19% to 0.61 euro) announced the main results of its phase 2/3 AAVance study evaluating LYS-SAF302, an experimental gene therapy for the treatment of MPS IIIA, a rare autosomal recessive neurodegenerative lysosomal storage disease which affects approximately 1 in 100,000 newborns. The study did not reach its primary efficacy endpoint in the main cohort (12 patients recruited at age greater than 30 months) aimed at demonstrating a statistically significant improvement in cognitive DQ 24 months post-treatment, as assessed by BSID-III, compared to the NH cohort.