(Boursier.com) — The brutal relapse of the Parisian market on Friday did not prevent the CAC40 from regaining a little height over the week with an index which rose by 1.30% over five sessions, to 7,015 points this Friday evening. After the bankruptcies of the American regional banks SVB and Signature Bank, as well as the emergency rescue plan of Credit Suisse, acquired by UBS, the markets were caught up in fears surrounding Deutsche Bank after a sharp increase in the cost of insurance against a default risk of the first German bank.
Before that, the return to calm had been allowed by the declarations of the European supervisors whose remarks reassured the bondholders who had initially felt aggrieved by the rescue plan of Credit Suisse, fearing a precedent… as 5 of the world’s largest central banks agreed last weekend to improve the supply of US dollars to global markets by increasing the frequency of currency swap operations in an attempt to ease market tensions .
Wednesday’s announcements from the US Federal Reserve left investors somewhat perplexed. The Fed did raise rates as expected by 25 basis points, but spoke of an upcoming pause, while its president reiterated his commitment to fight inflation… Jerome Powell pointed out that further rate hikes rates could follow, if necessary, and that no drop was expected this year… Contrary to market price. The Swiss National Bank and the Bank of England also raised their key rates, as expected.
On the values front, Casino continues to make people talk, while Sanofi stood out after new favorable results for its flagship drug.
On the oil market, crude had a turbulent week but still posted a 2% gain with a barrel of Brent fluctuating around $74.5 this Friday evening. On the currency market, the dollar index is close to 103 pts while the euro has gained ground against the greenback, around $1.075 between banks. Bitcoin has recorded big gains in recent days and is trading again close to $28,000 on Coindesk.
VALUES
* Sanofi jumped 8.1%. The company and Regeneron announced that Dupixent met primary and secondary endpoints in patients with chronic obstructive pulmonary disease (COPD) lung disease in a Phase III study evaluating experimental use. of Dupixent (dupilumab) compared to placebo in adults on maximum standard inhaled therapy (triple therapy) with uncontrolled COPD with type 2 inflammatory signature. and highly significant (30%) moderate or severe acute exacerbations of COPD (rapid and acute deterioration of respiratory symptoms), as well as significant improvements in respiratory function, quality of life and respiratory symptoms due to COPD. These positive data could herald a new era of cutting-edge treatments for this life-threatening respiratory condition. “It was a high-risk study,” writes Mark Purcell, analyst at Morgan Stanley, quoted by ‘Bloomberg’.
* Thales gain 6%. The Defense group, which is moving close to its historic high on the stock market, was supported by a note from JP Morgan which raised its recommendation on the value to ‘overweight’, still targeting 160 euros
* L’Oreal rose 4.7%, while JP Morgan raised its target from 350 to 370 euros while remaining ‘neutral’ on the issue. The world’s number one cosmetics company has taken advantage of the new buyer flow to the luxury segment in recent days.
* Hermes takes 3.3% and signs a new stock market record. Despite the current strong uncertainties linked to the American and European banking sector, the sub-fund continues to be sought after. Both Tod’s and Brunello Cucinelli provided positive indications of the ongoing momentum when releasing their 2022 results last week, confirming solid demand for luxury goods so far this first quarter as China recovers and the rest of the world remaining firm at this stage, also underlined Oddo BHF.
* Danone (+3.3%). Oddo BHF confirmed its ‘outperform’ rating on the agrifood giant after a 3-day roadshow in North America with Top Management and the Investor Relations team. The analyst explains that he was very positively surprised by the Top Management and by its ability to inspire confidence both internally and with all the stakeholders, and in particular the investors.
Conversely, * Casino collapsed by 26.2%. After Rallye’s warning the day before about its own debt, Moody’s on Thursday evening lowered the distributor’s long-term credit and CFR ratings from ‘B3’ to ‘Caa1’ (very poor quality bonds with a high risk of default). The outlook remains ‘negative’, a sign that the agency could further lower its rating in the coming months. “The downgrade reflects continued market share losses in the French retail market, still negative free cash flow in France and reduced domestic retail margins in 2022,” Moody’s said. also forward a “low liquidity profile” because the group depends on the ongoing process of asset disposals to be able to repay its maturing debt maturities. Casino must still refinance or repay approximately 1.2 billion euros of bonds in circulation by 2024 and an additional 1.8 billion by 2025, notes Moody’s.
* Voltalia plunged 14.6% after annual results marked by a widening of its net loss despite a sharp increase in turnover. Morgan Stanley speaks of a “significant lack” in Ebitda and net income. The Ebitda, of 137 million euros, compares to a consensus of 188 ME, underlined the bank, with “line weighting” on the file. The shortfall seems to be mainly due to disappointing energy sales given a significant drop in electricity production. The company has confirmed its targets for this year, but will need to generate 40 million euros in contracts over the next nine months, adds MS.
* Guerbet stumbles 13.6% after its annual release. Although the specialist in contrast products and solutions for medical imaging managed to preserve its operating profitability in 2022, it suffered a heavy net loss of 41.1 ME over the year and warned that its margins will remain under pressure in 2023. At the start of the year, Guerbet declares that it is confident in its ability to develop its sales in a market for contrast products which is developing favourably, with structural growth in volumes being accompanied today, for the first time in many years, of positive price effects. The group nevertheless remains confronted with a demanding environment, marked by the persistence of pressure on supply costs, in particular on iodine. These inflationary effects, which have little impact in 2022, will deteriorate the group’s margins in 2023.
* Unibail-Rodamco-Westfield fell by 10.7% with Klepierre (-8.5%) and Mercialys (-11.1%). Real estate suffered this week on the stock market with fears surrounding the banking sector. A cautious rating from Goldman Sachs also weighed on the fund.
* Orpea 9.1% drop. Concert’O, the concert bringing together the family group Mat Immo Beaune and the Nextstone group, has proposed a new alternative to the company plan agreed with the Caisse des Dépôts et Consignations and other investors on the financial restructuring of the company. This group of shareholders ofOrpea, the “Support Club”, a group of creditors of the retirement home operator, jointly representing more than 500 million euros in unsecured debt, together with other unsecured creditors, consider that the Company’s plan contains an excessive risk of execution, is discriminatory and unfair to the detriment of certain stakeholders, and provides for an untested solution, subject to dispute, to the detriment of Orpea. Conversely, the financial restructuring proposed by Concert’O and its supporters “provides a fair opportunity for all stakeholders (shareholders, secured and unsecured creditors) to invest in the group, and a fair distribution of value in consideration of their respective contributions, and is significantly more favorable to the Company’s existing shareholders, in particular by offering them an opportunity to participate in Orpea’s future value creation”.
* Teleperformance yields 6.1%. Four months after announcing its withdrawal from the most offensive segment of its content moderation activity (Trust & Safety), the world leader in outsourced services and business consulting dedicated to customer relationship management has finally indicated the maintaining its comprehensive offering of content moderation services, including the most offensive segment. “This decision is the result of exhaustive review of the group’s content moderation activity with its various stakeholders, and in particular its employees, customers and shareholders. Detailed internal audits were also carried out, as well as external investigations and audits carried out by independent third parties, Korn Ferry and Bureau Veritas”. A sensitive area could frustrate investors.The Swiss bank says companies in the content moderation industry still need to do more to explain the nature of their business and the protections offered to employees.