THE TREND
(Boursier.com) — Down for a good part of the morning, the Paris Stock Exchange turned green as midday approached, with the CAC40 gaining 0.1% to around 7,960 points. The records therefore remain in sight before the monetary policy meeting of the European Central Bank expected without surprise since it should maintain its rates at their current levels, and only marginally alter its speech, namely that inflation remains too high to be able to lower them without additional data.
“The ECB could fall into the trap of focusing too much on wages: negotiated wages are falling and the triggering of a price/wages loop now seems very unlikely,” Christophe Boucher, ABN Investment Director, commented this week. AMRO Investment Solutions.
Note that gold is still trading at highs of $2,157 per ounce, rising continuously for a week.
Quoting…
RISING VALUES
* Spie climbs 7% to 33 euros after announcing annual production of 8,709 million euros, up +7.6% compared to 2022, including +8.4% organic growth, an exceptional level reflecting the strong dynamic of its markets, as well as its ability to increase prices in an inflationary context. The group reported a strong increase in EBITA of 14.3% compared to 2022, to 584.2 million euros. The EBITA Margin is higher than the objective, at 6.7% of production; +40 bp compared to 2022, despite an inflationary context, and thanks to the permanent attention paid to operational excellence and further increased selectivity in a context of strong demand for its services. The adjusted net profit is 344 ME (+14.2% compared to 2022). Net income, Group share, stands at €238.5 million (+57.4% compared to 2022). The recommended dividend for the 2023 financial year is 0.83 euros per share, up 13.7% compared to 2022.
* New all-time high for Liquid air which gained 1% to 192.6 euros. LBW revalued Air Liquide from 175 to 205 euros (‘purchase’).
* Dassault Aviation increased by 1.3% to 185.2 euros. SocGen raised its target from 211 to 227 euros (‘purchase’).
FALLING VALUES
* Teleperformance collapsed by 20% to 89 euros, this time sanctioned after a disappointing publication. For 2024, Teleperformance has indicated that it is adopting a cautious approach and is adapting its development model to the volatile macroeconomic context. Growth in activity is expected to remain limited in the first quarter of 2024, given a very unfavorable basis of comparison and an environment that remains volatile. The annual organic revenue growth objective is between +2% and +4% with an increase in recurring EBITA margin of between +10 and +20 points on a pro forma basis (vs. 14.9% in 2023) excluding Majorel integration costs.
* JCDecaux loses almost 8% to 18 euros. The absence of a dividend, the Decaux family having chosen to strengthen the balance sheet rather than shareholder remuneration, and slightly short forecasts compared to expectations explain this sharp decline in value. Management anticipates organic growth of around 9% in the first quarter of 2024 compared to a consensus closer to 10%.
* GL Events fell by almost 4% to 21.5 euros the day after the presentation of its annual accounts. Turnover stood at a record level of 1.427 billion euros, growing by 9% and 11% at constant exchange rates, while EBITDA increased by 18% to 199.2 ME , i.e. a margin rate of 14%, up 1.2 points. The proposed dividend is multiplied by 2 to 0.7 euros per share. The group is targeting 7% growth in turnover this year, with stable net debt.