THE TREND
(Boursier.com) — Investors are awaiting the publication of PCE inflation in the United States on Thursday and inflation in the Eurozone on Friday, which could force the markets to revise their monetary easing scenarios… From here these two meetings, a wait-and-see attitude seems likely to prevail on the Parisian market which remains just below its recent records. Also very close to 8,000 points, still in the viewfinder…
Over the past week, the Parisian index has broken its closing record every day, peaking at 7,966.68 points on Friday, also beating its historic record during each session. The last one, Friday, was set at 7,976.40 points.
Comments from monetary policy makers continue, with Federal Reserve Board of Governors member Michelle Bowman reiterating Tuesday that the central bank should take a “cautious” approach…
Quoting…
WALL STREET
Wall Street has appeared a little more uncertain since the start of the week, in the wake of its series records on the Dow Jones, S&P 500 and Nasdaq 100 indices… The S&P 500 gains 0.17% to 5,078 pts, while the Dow Jones fell by 0.25% to 38,972 pts. The Nasdaq nevertheless progressed by 0.37% to 16,035 pts.
ECO AND CURRENCIES
UNITED STATES :
– US GDP for the fourth quarter. (2:30 p.m.: Second estimate out of three.)
– Stocks and wholesale sales. (2:30 p.m.: Second estimate out of three.)
Europe:
– Business climate in the euro zone. (11:00)
– European Economic Confidence Index. (11:00)
– Consumer confidence in the euro zone. (11:00)
– European industrial confidence index. (11:00)
– European index of trust in services. (11:00)
The euro/dollar parity reached $1.0822 this morning. A barrel of Brent is trading at $83.14. An ounce of gold sells for $2,028.
VALUES TO FOLLOW
Worldline announces a 6% increase in its annual turnover to €4.61 billion in 2023, in line with market expectations (organic growth of +6%, including +8.9% in merchant services), while the group’s share of net income fell due to a depreciation for goodwill worth 1.15 billion euros linked to its merchant services activities. The group’s net loss thus amounts to 817 million euros in 2023, after a profit of 221 million the previous year. The adjusted EBITDA (previously EBO) is 1,110 million euros, stable compared to 2022. The group reports 355 ME in cash flows, or 32% conversion rate of the adjusted EBITDA and 521 ME of normalized group share of net income, stable compared to 2022.
Interparfums announces that the increase in invoicing prices practiced at the start of the year made it possible to limit the impact of increases in the prices of raw materials and packaging costs, as well as the slightly unfavorable evolution of the euro-dollar parity, the rate gross margin for 2023, thus showing a controlled and measured decline compared to 2022. The sharp increase in sales volumes, as well as continued sustained investments in marketing and advertising, for an amount of 177 ME, or 22% of sales, combined with the recurring control of fixed costs, have contributed to a strong increase in current operating profit which exceeds 160 ME in 2023, up 16% compared to 2022. The current operating margin thus reached 20% over a financial year. After taking into account the annual asset valuation tests, operating profit increased by 26% compared to the previous financial year and the operating margin thus reached 20.7%, an unusually high amount. If the average tax rate has occasionally increased, the net profit follows the same trend with an increase of 19% compared to 2022, to reach nearly 119 ME, the net margin approaching 15% over the period.
Altarea generated in 2023 a net recurring profit (FFO) down sharply to 101.2 ME (275.4 ME in 2022), with a successful Retail property whose net rents are increasing but a limited contribution from Housing, linked to the implementation of a policy of accelerated and proactive adaptation to the context and an already announced absence of major office operations. Altarea has decided to record an exceptional Promotion accounting charge in the amount of -448.8 ME (-348.3 ME after tax) as a change in value. In total, the Group’s share of net income is negative -472.9 ME for a turnover of 2,712.3 ME (-10%).
Coface recorded a consolidated turnover of 1.868 billion euros, an increase of +6% at constant exchange rates and scope compared to 2022. In published data (at current scope and exchange rates), turnover increased by +3.8%. The combined ratio net of reinsurance stood at 64.3% over the year, an improvement of 3.3 ppts over one year. The net loss ratio improves to 37.7%, an improvement of 2.0 ppts compared to 2022. In 2023, the net reinsurance cost ratio stands at 26.6%, an improvement of 1.0 ppts compared to 2022. 4 ppt over one year thanks to the improvement in the gross ratio and continued high reinsurance commissions. Operating profit amounts to 362.9 million euros in 2023, up +1.6%. The effective tax rate reaches 27% (27% in 2022). In total, the net profit (group share) amounts to 240.5 ME, stable compared to 2022 calculated with the IFRS17 standard.
Lagardère : Lagardère’s turnover in 2023 stands at €8,081 million, an increase of +14% compared to 2022 on a comparable basis. The EBIT stands at 520 ME in 2023 vs 438 ME in 2022, a strong increase of +82 ME. The EBIT of Lagardère Publishing amounts to 301 ME vs 302 ME in 2022 and that of Lagardère Travel Retail to 245 ME vs 136 ME in 2022. The result before financial charges and taxes stands at 434 ME in 2023, compared to 320 ME in 2022, and includes non-recurring/non-operational items for -85 ME. Adjusted net income, Group share, stands at €252 million, compared to €265 million in 2022.
LATEST SALES/RESULTS PUBLICATIONS…
CNova, Adocia, Audacia, Toosla, Miliboo, Bilendi
THE LATEST “RECOS” FROM ANALYSTS…
Bernstein goes from ‘outperformance’ to ‘market performance’ on Stellantis with a target price of 25 euros.
BNP Paribas Exane remains at ‘outperformance’ on Schneider Electric with a target that goes from 195 to 240 euros.
BNP Paribas Exane is at ‘outperformance’ on Edenred with a price target reduced to 63 euros.
Morgan Stanley is ‘market weighted’ on OVH with a target raised to 10.20 euros.
MARKET INFO
Nicox restructures its debt to extend its cash horizon
IN SHORT
OSE Immunotherapeutics: partnership with AbbVie for OSE-230
Hermès International opens a new store in Japan
Visiativ: the sale agreement to Groupe SNEF is concluded
Vinci: acquisition in the United States
Tikehau Capital: private debt in Asia with UOB-Kay Hian