THE TREND
(Boursier.com) — Third consecutive session of decline on the Paris stock market with the CAC40 sliding around 6,850 points, down 1% around midday. The annual gains of the CAC40 continue to decline: they now barely exceed 5%. It must be said that the cocktail remains quite explosive between bond rates which remain very tight at almost 5% for the American 10-year bond, oil prices which are not coming down with the conflict in the Middle East and company results which struggle to meet expectations.
Furthermore, Jerome Powell’s recent comments did not rejoice investors! “The strength of the U.S. economy and continued labor market tensions could justify further interest rate hikes from the Federal Reserve,” he said. For inflation to sustainably return to the Fed’s 2% target, it “will likely require a period of below-trend growth and further easing of labor market conditions.”
RISING VALUES
* Only one significant increase on the CAC40: Renault gained 0.5% to 33.6 euros. Oddo BHF maintains its positive opinion on the stock which remains among its favorite stocks this year. The price target was reduced from 60 to 55 euros.
* Lhyfe recovers 4% at 3 euros. Bryan Garnier raised his recommendation on the 100% green hydrogen specialist to ‘neutral’ while maintaining his target at 3.9 euros.
* Vivendi gained 2.7% to 8.48 euros after solid turnover over 9 months.
FALLING VALUES
* L’Oreal lost 1.2% to 381.6 euros. The world’s number one cosmetics company recorded organic revenue growth of 11.1% in the third quarter, just shy of expectations. On a like-for-like basis, i.e. at the same structure and exchange rate, the growth in the group’s turnover L’Oreal stood at +12.6% at the end of September. The Europe Zone achieved exceptional growth of +17.6% on a comparable basis. North America posted growth of +12.6% on a comparable basis while Asia-Pacific was at +1.3%…
* Verallia lost 3% to 33.2 euros in the morning on the Paris market, punished after the announcement of results lower than analysts’ expectations in the third quarter. In a degraded market context since August, Verallia has temporarily adjusted its production capacities to put itself in good start-up conditions in 2024.
* Roche Bobois drops almost 7% to 40.8 euros the day after the confirmation of its annual objectives. Despite a slight decline in its revenues in the third quarter, the group still anticipates a turnover of at least 425 ME, i.e. growth of around +5% and a further increase in its EBITDA compared to the record of the year 2022. Management also reiterated its distribution policy to shareholders, with, as in 2022, the payment of an interim dividend of 1 euro per share for the current financial year.
* Rexel fell by 6% to 18.5 euros despite the confirmation of its 2023 objectives. The distributor of electrical equipment revealed quarterly turnover of 4.67 billion euros, up 2.6% on a constant day. The consensus was expecting a slightly more marked increase of 3%. Volumes are up +2.3% on a high base effect linked to electrification products and a more contrasted market environment, demonstrating the strength of Rexel’s positioning in its markets. The pricing environment remains favorable for non-cable products, up +1.3% over the quarter.
* Verimatrix lost 10% to 0.48 euros the day after the announcement of quarterly activity down 12.7%. The group explained that the third quarter was marked by strong growth in revenue from subscriptions on which the sales teams are currently fully mobilized. On the other hand, this level of activity includes the programmed and structural drop in non-recurring revenues corresponding to sales of perpetual licenses and royalties on the production of decoders.