THE TREND
(Boursier.com) — The Paris market lost some ground on Tuesday around 7,030 points (-0.2%) at the end of the morning. The Parisian index still rose to 7,058 points at the start of the day and garnered 9 sessions of increases out of the first 11 of 2023 to post a gain of almost 9% now.
“We need to raise rates more,” ECB chief economist Philip Lane said in an interview with the Financial Times. “Last year we could say it’s clear we need to bring rates up to more normal levels and now we’re saying, in fact, we need to take them into restrictive territory.” Something to make investors think before the next decisions of the ECB. The next meeting of the ECB’s monetary policy committee is scheduled for February 2.
China’s gross domestic product grew by only 2.9% year on year over the last three months of 2022, according to official statistics, which bring growth to 3% over the whole of last year, a figure well below the Beijing target of around 5.5% and which marks one of the lowest growth rates since 1976.
RISING VALUES
* Guerbet (+9% to 18.5 euros) plans to gradually withdraw from its micro-catheter activities historically housed within Accurate Medical Therapeutics. Since its takeover in 2018, the portfolio of micro-catheters has been very significantly expanded with today 38 references on the 2 ranges of SeQure and DraKon micro-catheters, intended for peripheral embolization procedures. An activity of little significance on a Group scale, it now requires specialized and strengthened sales teams and still significant investments to realize its full commercial potential, elements that no longer correspond to the Group’s development strategy. Guerbet also plans to sell the Occlugel technology acquired in 2018, comprising several ranges of microspheres for use in embolization.
* Benefiting from the lifting of health restrictions in China, the luxury sector remains surrounded with, in particular, Hermes (+0.7% to 1,640 euros) which is approaching its peaks. Several analysts review their copy on the file ahead of the saddler’s annual publication. Oddo BHF notably revalued the stock from 1,555 to 1,794 euros while remaining to ‘outperform’. Morgan Stanley raises its target from 1,400 to 1,780 euros with an opinion maintained at ‘line weighting’.
* LVMH (stable at 792 euros) hit a new historic high this morning at more than 795 euros, which corresponds to a market capitalization of more than 400 billion euros. First capitalization of the CAC40, LVMH weighs twice as much as the second “capi” of the index, L’Orealwhile Hermès is in third place.
* STMicro advance of 1% to 38.4 euros, in the green for the fifth consecutive session. Barclays started coverage of the semiconductor group with an ‘overweight’ rating and a target of 60 euros. The analyst, who also favors Infineon in the sector, says the two players are valued on “undemanding” bases while the consensus seems “too conservative”.
* Catana Group (+7% to 6.82 euros) posted in the first quarter of its 2022-2023 financial year a turnover of 40.1 million euros, up 35% over one year.
FALLING VALUES
* Renault yields 0.2% to 37.2 euros. Deal in sight between Renault and Nissan Motor? After long talks, the independent directors of the Japanese manufacturer have agreed to conclude an agreement to rebalance the alliance between the two groups, believes ‘Bloomberg’, citing a person close to the discussions. Final negotiations are underway for Renault to reduce its stake in the Japanese automaker, and for Nissan to invest in Renault’s future electric vehicle entity, named Ampère. The talks could lead to a formal agreement before the end of the month.
* Engie lost 4% to 12.65 euros. BofA Global Research downgraded its recommendation from “buy” to “underperform” with a target price of 12 euros.
* Alstom (-2.3% to 25.3 euros) won a new contract with VR Sweden for the maintenance of 30 regional trains in Sweden. The rail group will maintain the fleet of VR Sweden, the new train operator, for the Tåg i Bergslagen fleet, which connects the four counties of Bergslag. The contract is worth nearly one billion Swedish crowns (about 88.6 ME) and Alstom’s aim will be to provide 10 years of fleet maintenance, with a one-year option. The new contract will start on December 10, 2023.