(Boursier.com) — THE TREND
The CAC 40, which yesterday put an end to 5 consecutive sessions of decline, regained another 0.9% this midday to 7,180 points. The less solid than expected US GDP figures for the second quarter were relatively good news for the markets, since they left a little more room for maneuver for the Fed. This morning the inflation data in the euro zone confirmed a relative calming… Good news also on the inflation side in France: According to provisional data from INSEE, consumer prices increased by 4, 9% over the period (+5.1% consensus), like the previous month. The slowdown over one year in the prices of food, services and manufactured products would in fact be offset by the acceleration in energy prices, due to the rebound in those of petroleum products. Over one month, consumer prices should fall by 0.5%, after +1.0% in August.
Across the Atlantic, PCE inflation, the indicator on which the Federal Reserve relies to monitor price dynamics, will also be monitored at 2:30 p.m…. The euro rises this midday to 1.0620/$. Oil returns to $96 per Brent.
RISING VALUES
Orpea rises by 12% followed by Trigano (+9%) after good accounts
Adocia rises by 8% with Inventiva (+7%)
Virbac (+6%) The turnover stood at 610.5 million euros compared to 616.4 million in 2022, an overall change of -1%. Excluding currency effects, turnover remains stable at +0.4%, favorably impacted by price increases (estimated effect around +5%) which compensate for the drop in volumes already observed and which reflects the market trend of animal health observed for almost twelve months. Current operating income before depreciation of assets resulting from acquisitions amounts to 109.9 million, down compared to the first half of 2022 (117.4 million), i.e. a drop of one point in the “current operating income” ratio. before depreciation of assets resulting from acquisitions” on “turnover” which stands at 18%. After restating for the unfavorable exchange rate impact, this same ratio stands at 18.4%, a slight erosion of -0.6 points compared to 2022.
P&V : +5% followed by BioMerieux recommended by several brokers, OVH and Clariane
Guerbet : +4% with Waga and Sopra
Ubisoft : +3% with SoiTe, Atos, Teleperformance, Dior and Nexans
JC Decaux : +2.5% followed by Casino, IPSOS
Fnac Darty (+2.5%) announced that it has finalized the acquisition of MediaMarkt in Portugal, in accordance with the terms communicated on April 20, 2023, for completion on September 30, 2023. MediaMarkt Portugal is a renowned electronic products distributor which operates 10 stores as well as ‘an online store, and employs around 450 people nationwide. It offers a very extensive range of household appliances and technical products, with a wide range of references and a recognized range of services. In the 2021-2022 financial year, MediaMarkt Portugal recorded a turnover of approximately 140 million euros.
Rémy Cointreau (+2%) announced the finalization today of an unlisted and unrated private bond placement for a total amount of 380 million euros with maturities of 7, 10 and 12 years (i.e. an average maturity of 10 years) with a weighted average coupon of 5.58%. The bonds were subscribed by a selection of international institutional investors, confirming the market’s confidence in Rémy Cointreau’s business model and the quality of its credit profile. Rémy Cointreau is rated Baa3, stable outlook by Moody’s.
FALLING VALUES
Xilam collapsed by 19% the day after the announcement of a clear deterioration in its profitability in the first half. Oddo BHF maintains a solid FCF despite profitability under pressure, which should remain so in 2024. The broker lowers its target from 37 to 25 euros in order to reflect the drop in its forecasts at CT (EPS -50% 2023 and 2024) as well as an increase in the risk premium. In a context that is not very obvious for streaming platforms (Xilam’s first clients through Netflix and Disney+ in particular) which tends to weigh on the demand for new animated content, the push towards the teen-adult animation segment, in growth, seems relevant. This should continue to weigh on margins in the short term even if FCF generation will be preserved (it was historically negative at Xilam). Xilam maintains a growth profile with long cycles and visibility on activity (CA: CAGR 2023-26 +12.5% estimated). The analyst remains ‘outperform’ on the stock from a medium-term perspective.
The group announces profitability which has been seriously affected by the evolution of the mix and the increase in fixed costs and its accounting impact, affirms TP ICAP Midcap (‘purchase’). The broker adjusts its 2023-2026 estimates again, integrating a significantly less sustained MopC in 2023 and 2024 before normalization from 2025 on a more balanced model of new production (50/50) and a stabilization of fixed costs… The objective is cut from 34.5 to 24.5 euros.
The cross (-11%): The current operating profit stands at 8.8 ME over the period, representing 2.3% of turnover, i.e. a virtual stability of the margin rate (2.4% in the 1st half 2022). For its part, operating profit increased by +11.2%, to €8.1 million. The consolidated net income (+29.2%, to €4.6 million) includes a positive tax balance (+0.2 million), coming from the activation of deferred taxes. The increase in minority interests supports the Group’s net profit, which stood at 5.6 ME at the end of the first half (3.9 ME a year earlier), a sharp increase of 44.1%.
Guillemot falls by 2% after its accounts
Technip Energies : -1% with oil and TotalEnergies, followed by Vallourec
Renault : -0.5% alongside Manitou, AXA and Forvia.