THE TREND
(Boursier.com) — After a hesitant start to the session, the CAC40 nosedived at midday, down 0.96% to 7,037 points. After slightly higher than expected inflation figures across the Atlantic, the prospect of a lasting rise in interest rates in the United States is weighing on risk appetite.
The weekend was also marked by the surge in the barrel of Brent, which climbed more than 3% and was heading towards its largest weekly gain in six years, due to fears that the war between Israel and Hamas would destabilize the Middle East and paralyze global supply. An escalation of the war between Israel and Hamas, involving Iran, could push the price of crude oil to $150 a barrel and reduce global economic output by about $1 trillion, according to Bloomberg Economics.
On the value side, Sartorius Stedim Biotech falls after its new warning. Conversely, Guerbet and Ubisoft are sought after.
The euro/dollar parity reached $1.0529 this midday. A barrel of Brent jumped 3% to $89. An ounce of gold sells for $1,887.
RISING VALUES
* Guerbet stands out at midday thanks to a gain of 5.5% to 17.2 euros. It must be said that the specialist in contrast products announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has issued a favorable opinion for the granting of marketing authorization. market of Elucirem (Gadopiclenol) in the European Union for its use in adults and children aged 2 years and older for MRI with contrast enhancement. The European Commission is expected to make its decision by the end of 2023. Guerbet believes that if approved by the EC, Elucirem will represent an important innovation in MRI contrast agents, thus addressing the concerns of patients and doctors. radiologists in Europe. An MRI exam with Elucirem requires half the dose of gadolinium compared to existing non-specific contrast products.
Portzamparc (‘purchase’) speaks of excellent news for the group. This first step was expected and should be followed by the end of 2023 by the issuance of the Marketing Authorization by the European Commission, thus allowing marketing in the first half of 2024. The broker recalls that Elucirem was approved by the FDA in September 2022 and should generate turnover of around €15 million in the United States in H2 2023 according to management.
* Ubisoft took advantage of favorable news to gain 1.4% to 29 euros after a jump of more than 6.5% on Thursday. The video game publisher announced yesterday that the latest installment of Assassin’s Creed was breaking all records less than a week after its release. “We are proud to announce that Assassin’s Creed Mirage is Ubisoft’s best new next-gen launch in terms of sales (PS5, Xbox Series XS),” the group said on ‘X’.
This Friday, the British competition authority gave the green light to the takeover of Activision Blizzard by Microsoft, which supports the French group. With this agreement, the last major regulatory hurdle standing in the way of completing the largest transaction in the history of the video games industry is now removed. This announcement is, however, not surprising given that the Competition & Markets Authority indicated last August that the remedies proposed by the American giant “substantially responded” to its previous concerns. Activision has notably agreed to sell to Ubisoft the cloud streaming rights to ‘Call of Duty’ and any other current or future Activision-Blizzard title during the 15 years following its acquisition by Microsoft.
* Remy cointreau outperformed the market this weekend with a stock gaining 1.3% to 115.3 euros. Oddo BHF upgraded its opinion on the issue to ‘outperform’ with an adjusted target of 131 to 129 euros. The spirits sector has been heavily attacked since the end of August. The poor momentum of the current half-year has erased 8 years of rerating. This constitutes, for the broker, an opportunity to return to quality stocks positioned in a growth sector with attractive fundamentals. The analyst favors quality stocks: Diageo and Pernod Ricard with a preference for the latter (discount vs. Diageo due to asynchronous S1/S2 momentum) while the strong derating of Rémy Cointreau offers a unique opportunity in the short term ( momentum at its lowest while the long term is not called into question).
* ADP Group tries to resist the market decline at midday with a stock which nibbles 0.3% to 107.4 euros. JP Morgan raised its opinion on the Paris airports manager to ‘neutral’ with an adjusted target of 118 to 115 euros. The bank cites a more attractive valuation after the stock’s underperformance since the start of the year (-14%) while it also recognizes the improvement in traffic prospects in Paris.
FALLING VALUES
*Sartorius Stedim Biotech plunges 15.5% to 190 euros, sanctioned after its profit warning. The laboratory equipment manufacturer now expects to record a drop in its turnover of nearly 19% (-14% excluding items linked to Covid-19), compared to a decline “of a percentage between the low and the middle of the tens range. Due to lower volume forecasts and product mix effects, the current EBITDA margin is now expected to be slightly above 28%, compared to around 30% previously targeted and 35% last year. Over the first nine months of the year, the group recorded a consolidated turnover of around 2.069 billion euros, down nearly 19% at constant exchange rate. Management expects profitable growth in 2024 and will give quantitative indications when publishing the figures for the year 2023 in January 2024. Its medium-term ambition until 2025 is currently under study and an update update will also be provided in January 2024.
Morgan Stanley says the weakness in the third quarter was somewhat anticipated, but not to this level. The bank does not consider this a ‘clearing event’ either. After lowering its adjusted EPS estimates from 20% to 31%, Oddo BHF cuts its target from 280 to 206 euros. Uncertainty surrounding new medium-term guidance and weak demand for bioprocessing solutions will continue to weigh on the stock price. “Even though the first green light may be seen as positive, we feel more comfortable staying away and reiterating our ‘neutral’ view,” explains the analyst. Gilbert Dupont also downgraded the file to ‘reduce’ while reducing his objective from 280 to 221.7 euros.
* Alstom (-3.6% to 12.8 euros). Moody’s Investors Service has decided to confirm the long-term issuer rating at ‘Baa3’. However, it lowered its credit outlook from Stable to Negative. Alstom believes that the change in outlook will not impact its ability to access short-term financing and contract execution. The Group thus reaffirms its commitment to an “Investment Grade” rating.