THE TREND
(Boursier.com) — The CAC40 extended its rebound this morning to +0.6% before returning to equilibrium as midday approached around 7,400 points. In a market which is always scrutinizing the slightest element likely to confirm or call into question the hopes of a fairly rapid drop in key interest rates, certain sectors are penalizing the trend, such as luxury, while cyclical industrial stocks are maintaining a solid course. .
RISING VALUES
* Largely at the top of the CAC40 rankings, Teleperformance jumped 6.4% to 140.3 euros this weekend. Stifel went ‘purchase’ on the customer relations specialist with an objective raised from 170 to 200 euros. The analyst expects 2024 to mark an inflection point after the negative earnings momentum seen last year, with a gradual improvement in top-line growth and continued strong margin performance.
* Mersen (+0.3% to 31 euros) has entered into a global technical partnership with Canon, a leader in the fields of professional and consumer imaging equipment, industrial equipment and information systems, to provide innovative high-performance galvo scanner motors for the high-end laser scanning applications market.
* Argan (+1% to 81.6 euros) published recurring net profit group share for 2023 up +5%, to 126 ME, representing a high margin of 69% of rental income. Argan recalls that recurring net profit constitutes the best measure of its cash generation and reflects its ability to continue financing its development model despite the increase in financial costs recorded over the year (+43%). Including the mechanical effect of the variation in fair value of assets for -373.2 ME, in a context of decompression of capitalization rates, the group’s share of net income stands at -263.5 ME over 12 months. The NRV (replenishment NAV) stands at 90.6 euros per share as of December 31, 2023 (-14% over one year).
* Danone rises 0.8% to 61.9 euros while Stifel remains a buy on the file with a price target raised from 68 to 70 euros.
* AXA regains 1.8% to 30.5 euros this Friday, while Morgan Stanley overweights the insurer with a price target raised from 36 to 37 euros. The SG also remains a buy on the stock and has raised its target to 34.50 euros.
FALLING VALUES
* After a rebound yesterday, the luxury sector is already starting to decline again: LVMH yields 0.5%, Kering And Hermes almost 1%.
* Saint Gobain (-0.7% to 62.1 euros) announced two acquisitions in the non-residential floor coverings market, strengthening its presence in this construction chemicals segment. R.SOL is a French producer of resin-based flooring solutions, employing around 30 people. The finalization of the transaction, expected by the end of the first half of 2024, is subject to various conditions of use and consultation with staff representative bodies. Technical Finishes is a leading player in resin flooring solutions in South Africa employing approximately 90 people. This acquisition strengthens Saint-Gobain’s profitable growth profile in South Africa and the rest of the African continent.
* Plastic Omnium drops 3.8% to 10.3 euros after the announcement of the appointment of Olivier Dabi to the position of Financial Director from February 1, 2024. He joins the Management Committee of Plastic Omnium. He succeeds Kathleen Wantz-O’Rourke who is leaving the Group for new professional projects. On the analyst front, Kepler Cheuvreux adjusted its target from 13 to 12 euros while remaining ‘hold’.