THE TREND
(Boursier.com) — The Paris stock market resumed its ascent towards 8,000 points this morning but stopped at 7,965 points before returning to the red. At the end of the morning, the CAC40 lost 0.35% around 7,900 points.
The trend was affected in the morning by eurozone inflation figures for February. According to preliminary data from Eurostat, the annual inflation rate in the region is estimated at 2.6% in February, compared to 2.8% in January, and a consensus of +2.5%. Looking at the main components of inflation, food, alcohol & tobacco are expected to experience the highest annual rate (4.0%, compared to 5.6% in January), followed by services (3.9% , compared to 4.0% in January), industrial goods excluding energy (1.6%, compared to 2.0% in January) and energy (-3.7%, compared to -6.1% in January). Over one month, prices would increase by 0.6%. Core annual inflation, which excludes the most volatile elements, would stand at 3.1% compared to 3.3% in January and a consensus of 2.9%.
As for corporate publications, red also wins this Friday, even for Saint-Gobain despite very solid results.
Quoting…
RISING VALUES
* Stellantis peak in the morning, +0.8% to 24.3 euros. The news surrounding the manufacturer is marked by a note from Barclays which overweights the manufacturer with an adjusted target of 22 to 28.50 euros.
* Believe rose 4.5% to 15.5 euros this weekend as the king of online music prepares to leave the Parisian market less than three years after his arrival. It remains to be seen who will win. While a consortium made up of several funds managed by TCV, EQT as well as Denis Ladegaillerie, CEO of the company, wishes to launch a takeover bid at a price of 15 euros per share, a bidding war could take place. The Believe Board of Directors has indeed received an exploratory, preliminary and non-binding expression of interest, from an interested party seeking to access confidential information and engage in a dialogue with a view to potentially formulating an offer more attractive for the Company and its shareholders. “The interested party indicated that it should be able to value Believe’s shares at a minimum of 17 euros per share, while emphasizing that, at this stage, its approach did not constitute an offer, did not imply any obligation to make an offer, and did not manifest an intention to make an offer”. The Ad-Hoc Committee will examine with the interested party whether the latter considers additional steps.
FALLING VALUES
* Results poorly received for Saint Gobain which now drops more than 5% to 67.3 euros, at the bottom of the CAC40. The construction materials giant generated a net profit of 2.67 billion euros last year, down 11.1%, for a turnover of 47.94 billion euros, down by 6.4% (-0.9% like-for-like despite a difficult environment in new construction in Europe). The operating margin reached a new record to stand at 11% (compared to 10.4% in 2022), an increase of 330 basis points since the launch of the Group’s transformation at the end of 2018. Despite a difficult macroeconomic environment, all Regions showed an increase in operating margin, further proof of the Group’s resilience. For the 2024 outlook, despite a context that remains difficult in certain markets, the group is targeting a double-digit operating margin for the fourth consecutive year.
* Valeo fell by almost 3% to 10.4 euros the day after the presentation of solid 2023 results. The automotive supplier achieved an EBITDA of €2.647 billion in the last financial year, up 60 basis points over one year, for a turnover of €22.044 billion, an improvement of 11% at constant scope and exchange rates. The operating margin excluding the share of results of equity-accounted companies amounts to 838 ME, or 3.8% of turnover, up 140 basis points compared to the same period in 2022 restated, reaching the guidance 2023. Valeo will submit to the vote of its shareholders, at the next General Meeting, the increase in the dividend per share to 0.40 euros per share. For 2024, the company forecasts revenues of €22.5-23.5 billion with an Ebitda margin of 12.1% to 13.1%. Valeo plans to increase operating profit and cash generation by more than 60% between 2023 and 2025. But the company has revised its 2025 targets downward due to lower-than-expected growth in the automobile market and a slower than expected takeoff of the electric vehicle. The group now anticipates a figure of 24.5 to 25.5 billion euros in 2025, compared to 27.5 billion euros previously.
* Bonduelle (-5% to 9.4 euros) communicated for the first half of its 2023-2024 financial year a current operating profit of 38.5 million euros at current exchange rates and 50.5 million euros at current exchange rates. constant exchange rates compared to 43.1 million euros the previous year. This corresponds to an increase of +17.1% in current operating income, i.e. a current operating margin of 3.9% on a comparable basis and 3.2% on a published basis (3.5% a year earlier). Bonduelle still speaks of a consumer climate under pressure but confirms its annual objectives of turnover growth of around 5% and progression in current operating profit of around 15%, on a like-for-like basis.