(Boursier.com) — THE TREND
The CAC40 moved forward again this Wednesday, up 0.62% to 7,982 points at the close, without however being able to return to settle above the symbolic milestone of 8,000 points… The luxury sector has however made a positive contribution to this rebound after a quarterly publication considered reassuring by the group LVMH.
The Chairman of the Fed declared last night that recent indications on inflation in the United States had not given enough confidence to central bank officials to lower interest rates “soon”. … Jerome Powell added that the Fed may have to maintain high interest rates for longer than expected, while the markets were largely betting a few weeks ago on a first rate cut in June. The scenario of a first drop which would not occur before September is now fairly well integrated… The euro is meanwhile camped at 1.0640/$, oil returns below $90 for brent and the bitcoin falls to $61,000.
RISING VALUES
Medincell jumped 22%. The French biotech is logically in demand the day after the announcement of a major agreement with the American pharmaceutical giant AbbVie to co-develop and market up to six products in different therapeutic areas and indications. Under the terms of the co-development and licensing agreement which covers up to 6 programs, Medincell will receive an upfront payment of $35 million and could receive up to $1.9 billion in milestone payments and marketing ($315 million for each program). Medincell is also eligible to pay mid-single to low-double-digit royalties on net sales. Portzamparc emphasizes that the announcement is very important and secures cash flow beyond 2025, the horizon at which the group plans to become profitable. Enough to aim for a price of 19.40 euros while remaining a buyer on the file…
Quoting…
Neoen : +6% with Savencia
Memscap : +5.5% with Ubisoft, Esso (+4.5%) and Ose
Catana : +4% with Waga, Voltalia (+3.5%)
LVMH climbed 3.5%, with investors finally being reassured by the publication of the world’s number one luxury goods company. In the first quarter, the group reported sales of €20.7 billion, organic growth of 3%, with an increase of 2% for the flagship ‘Fashion & Leather Goods’ division. Morgan Stanley (‘online weighting’) refers to a “fairly good” publication. The figures and management’s comments during the presentation conference should slightly reassure the market, according to the bank. Bryan Garnier (‘buy’) believes that the first quarter could be the low point for the fashion and leather goods division. LVMH’s performance in the first quarter was “fairly bad”, as expected, but at least in line with expectations, without any “dramatic” trend. RBC (‘outperform’) highlights that management confirmed that fashion and leather goods trends in March were similar to those in the quarter, “which should provide modest reassurance that demand trends are quite stable”.
Alstom : +3% followed by P&V, Mercialys, TF1, CGG, Eramet
Virbac rises by 2.5%. In the 1st quarter of 2024, the group’s turnover stood at 345.7 million euros, up 9.8% at real rates compared to the same period of 2023. After restatement of the impact unfavorable resulting from the evolution of monetary parities, the growth in turnover over the period reached +10.8%.
Remy Cointreau : +2.5% with Lhyfe, Dior, LDC
Unibail-Rodamco-Westfield wins 2%. Citi raised its recommendation on the real estate company to ‘purchase’ while increasing its target from 52.5 to 85.2 euros. Markets appear to have “entered a new phase of stimulation, albeit slowly.” The analyst believes that the rate cut should help further support economic stability and growth from 2025 and anticipates a soft landing of the economy as the new base case.
Inventive : +2% followed by Manitou, Nexity, Hermès and Icade
FALLING VALUES
AB Science : -5.5% with Ramsay
Derichebourg lost 4% to 4.2 euros, in the red for the fifth consecutive session. The group, which is very dependent on recycling services, is logically abandoned after a warning on its annual results, the result of a reassessment of the impact of the cyber attack which affected the group’s operations and the continued deterioration of its end markets, notably construction which affected the production of long steels. In this context, Derichebourg should generate a current EBITDA of between 140 ME and 145 ME in this first half, down by around 35 ME to 40 ME compared to last year. Given these events and the business context mentioned, it is currently unlikely that the EBITDA delay observed in the first half will be completely made up by the end of the financial year, and that the target of EBITDA of at least €350 million for 2024 communicated when the 2023 results are published, is achieved. A current EBITDA target of between 300 ME and 310 ME at the end of the year appears realistic in the current state of the economy. Restated for the financial impact of the cyberattack, it would be 315 ME to 330 ME, the company said.
BigBen : -3.4% followed by Valneva (-2.7%) with Bonduelle and Thermador
Only one significant drop among the CAC40 values to report: Teleperformance yields 2.5%. Having become by far the lowest capitalization in the index with 5.6 billion euros, the group could however leave the CAC40 during a future review by the scientific council.
Lisa : -1.5% followed by Atos, Valeo, Plastic Omnium, STEF, Euroapi, Sword, Ekinops, Innate and Nexans
ViewGroup : -1% with Essilor, DS, Groupe Crit, Seb, Capgemini and Eurazeo