(Boursier.com) — The CAC40 set off again to attack its peaks this morning. A new historic high was reached at 7,561 points knowing that the last closing high was set at 7,549 points on Wednesday. In the middle of the day, a slight drop is needed (-0.1%) around 7,530 points. Many financial publications are still driving the session, in particular EssilorLuxottica at the top of the CAC40 after an excellent first quarter.
On the macroeconomic side, US statistics released on Thursday only heightened fears of an upcoming recession in the world’s leading economy: the Conference Board’s advanced economic index fell to its lowest level since November 2020, home resales have picked up On the downside in March, the Philly Fed activity index plunged to its lowest level in nearly three years and jobless claims rose slightly. But investors want to see the bright side of things: a recession would put an end to monetary tightening by the Fed and validate the last tightening of key rates in early May.
RISING VALUES
* EssilorLuxottica gains nearly 7% to 187.5 euros. At its highest since January 2022, the title of the world’s number one optical lens is driven by a very good quarterly publication with consolidated sales of 6.151 billion euros (5.94 billion euros consensus), up 8.6% at constant exchange rates (+9.7% at current exchange rates). All regions are accelerating compared to the 4th quarter of last year. Goldman Sachs revalued EssilorLuxottica from 190 to 194 euros (‘buy’).
* L’Oreal rose another 0.8% to 433 euros, an all-time high. Berenberg raised its price target from 378 to 412 euros and Deutsche Bank from 410 to 425 euros (‘hold’).
* Veolia wins 1.3% to 29.5 euros in the morning, helped by an analyst’s note. In a study dedicated to the European sector of utilities, Deutsche Bank raises to ‘buy’ its recommendation on the French group and raises its target price from 24 to 33 euros. She highlights “undemanding” multiples and improved communication.
* GTT rose by 1.8% to 94 euros on Friday, while the consolidated turnover for the first quarter amounted to 79.9 ME, up 17.2% compared to the first quarter of 2022. New construction business stood at 73.5 ME, up 19% compared to the turnover for the first quarter of 2022.
* Office Veritas gained 1.7% to 26.4 euros. The turnover of Office Veritas reached 1.405 billion euros in the 1st quarter of 2023, an increase of +8.9% compared to the 1st quarter of 2022. Organic growth amounted to +8.5%, thanks to sustained momentum in all activities on sustainability and energy transition issues. Bureau Veritas expects 2023 to achieve mid-single-digit organic revenue growth. The adjusted operating margin is expected to be stable.
FALLING VALUES
* Houses of the world lost another 3.7% to 9.5 euros this weekend, again penalized by analyst notes. Berenberg lowered its target on the stock from 19 to 15 euros while remaining on the ‘buy’ side. The analyst explains that the company, along with the rest of the furniture and décor distribution segment, has been navigating choppy waters since May 2022, when the level of demand for furniture and décor suddenly dropped. While the Christmas period showed some recovery in sales, this was only temporary as activity faltered again from January, as explained by management.
* Largest drop in the CAC40, Renault loses another 2.3% below 33 euros. Invest Securities reduced its target from 60 to 57 euros (‘buy’).
* Solutions30 fall of 12.5% to 1.95 euro, neglected after the announcement of a heavy annual loss despite rising revenues. Over the whole of the 2022 financial year, the group suffered a net deficit of 50.1 ME, against a profit of 21.5 ME in 2021, for a consolidated turnover of 904.6 ME, an increase of +3.5% (+1.4% organically). Adjusted EBITDA stood at 46.7 ME against 82.4 ME a year earlier. The good performance of activities outside France, which constitute the pillar of future growth, is masked by the poor performance of French activities.
* Ipsos loses 13% to 48 euros, sanctioned after a disappointing publication. The company’s turnover in the 1st quarter reached 532 million euros, down 2.9% and 2.8% on an organic basis. The group was penalized by strong unfavorable base effects, the global context of uncertainty which led some customers to show a wait-and-see attitude in their decision-making at the end of 2022 and the beginning of 2023, and the recovery of China following the abandonment of the zero-Covid policy which led to strong lag effects between the order book and revenues in the 1st quarter. In a context subject to the vagaries of global uncertainties and beyond the unfavorable comparison effects with the 1st quarter of 2022, Ipsos remains confident in its ability to achieve organic growth of around 5% this year and operating margin of around 13%.