(Boursier.com) — THE TREND
The CAC40 is still trying to rebound above 7,000 points but the trend remains very fragile and barely tinged with green at the end of the morning (+0.1% to 7,027 points). The ZEW index, measuring investor sentiment in Germany, came out higher than expected in October. The index thus reached -1.1 after -11.4 in September, and against a consensus of -9.3.
The question of the end-of-year rally is beginning to arise on Wall Street, while the American stock market has appeared resilient for several days, despite geopolitical and economic uncertainty. Michael Wilson, the usually very pessimistic strategist at Morgan Stanley, who, let’s remember, completely missed the stock market rebound this year, is nuanced on the subject. He therefore believes that a rally in the broad S&P 500 index in the fourth quarter of 2023 is “more likely than not”.
RISING VALUES
* Edenred And Elior earn more than 4% and Sodexo 2%. Contrary to what was feared for service and payment groups, the Competition Authority considers that, if price capping can constitute a response to market failures, it does not constitute the most appropriate response in this case. . In an opinion intended for the government, the regulator “recommends as a priority that it make dematerialization compulsory, seek a structural solution to rebalance the balance of power on the market and put in place appropriate regulation of the sector”. The Competition Authority had been asked for an opinion by the Minister of the Economy, Finance and Industrial and Digital Sovereignty, on the relevance of a regulatory framework for the amount of commissions received by issuers of restaurant vouchers on merchants approved by the National Commission for Restaurant Vouchers (“CNTR”) as well as on the question of the generalization of the dematerialization of restaurant vouchers.
* At the top of the CAC40, Airbus gained 2.4% to 125.9 euros. Jefferies has gone ‘purchase’ and is raising its target from 130 to 150 euros.
* Vivendi increased by 0.8% to 8.6 euros. JP Morgan has adjusted its target from 13.1 to 13.4 euros (‘overweight’).
* Stellantis is up very slightly to 18.8 euros in the morning while Barclays began monitoring the value with an ‘overweight’ advice and a target of 22.50 euros. The bank says the owner of the Jeep, Peugeot and Ram brands is among the best European and American automakers in terms of operating margin, free cash flow, dividends and capital efficiency. Structural earnings growth/resilience is among the highest in the sector. Barclays adds that the quality of Stellantis is not reflected in its share price with a 2024 PE limited to 3.
efferies goes ‘purchase’ on Airbus and increases its target from 130 to 150 euros.
FALLING VALUES
* Prodways collapsed by 16% to 1.19 euros. It must be said that the specialist in 3D printing for industry saw its growth slow down significantly in the third quarter with a turnover of 16 ME, or around 1 ME below the level of the same period in 2022. The activity is particularly penalized by the weakness of printer deliveries, anticipated for several months, to which is added an unfavorable economic situation which impacts short-cycle activities, in particular printing on demand. Under these conditions, achieving the 2023 guidance is uncertain, warned management. As a reminder, this was “around +5% revenue growth” and “around 8% current EBITDA margin.
* Still no rebound for Alstom which lost another 1.5% to 12.56 euros with a market capitalization which fell below 5 billion euros.
* Carmat lost 2% to 3.57 euros the day after the announcement of a capital increase for a total amount of 7 million euros subscribed in the vast majority by several of its historical financial shareholders. The issue consisted of the issue of 1.9 million new shares at a subscription price of 3.6 euros, corresponding to the price of the last trading session (October 13).