(Boursier.com) — Very good week for the Parisian market which returned to its levels of the end of September. Over five sessions, the CAC40 advanced by 2.7% at points this Friday evening to 7,234 points. The index has thus recovered almost 7% since the low point at the end of October below 6,800 points, while the latest inflation figures in the euro zone, but also in the United States, confirm the scenario of the end of the increase in key rates from the ECB and the Fed…
Although members of the ECB Governing Council have repeatedly stressed that the deposit rate will remain at 4% until 2024, money markets are now betting on a first reduction as early as April and are pricing in a full percentage point cut rates next year… For some observers, the market may have moved a little quickly.
As the quarterly quarterly season comes to an end, the week was marked by the continued easing of bond yields, but also by the new pronounced drop in black gold prices. Below $75, the barrel of WTI is on track for a fourth consecutive weekly decline (like Brent) due to growing concerns about global demand and the reduction in the risk premium linked to the war in the Middle East. East.
On the corporate side, Orpea and Clariane continued to be talked about, and to suffer on the stock market, while the announcement of a vast restructuring plan at Alstom caused major sell-offs at the rail giant. Conversely, the presentation of the new strategic plan at Eramet was praised.
On the currency front, the euro is rising and is approaching $1.09. Finally, Bitcoin consolidates a little after its sharp rise and is moving around $36,000 on Coindesk.
VALUES
* Elior soars by 22%! A buyer flow to be linked to a note from TP ICAP Midcap which increased its recommendation on the file to ‘purchase’ by targeting 2.5 euros. With a price down to 2 euros, the action reflects a general capitulation, says the broker. However, a new capable management, a new robust Multiservices activity, a less complex price-inflation equation are the ingredients of a recovery which will quickly materialize, explains the broker.
* Solutions30 jumped 14%, off a seven-week high. The European company specializing in solutions for new technologies announced that it had signed an agreement with GlasfaserPlus for the deployment of an FTTH network in Germany. This agreement is a new step in GlasfaserPlus’ ambition to provide access to high-speed internet to 4 million households in rural and small and medium-sized urban areas in Germany in the coming years. Both partners intend to provide turnkey FttH services, from connection to connection to homes. With this new agreement in Germany, Solutions30 continues its expansion in the deployment of very high-speed networks in Europe.
* Eramet climbs 9%, boosted by the presentation of its medium-term objectives as part of an “investor day”. The mining group announced that it intended to continue its project to increase its lithium production capacity in Argentina and attempt to double the production of its nickel mine in Indonesia as part of an investment plan that it considers capable of resisting the slowdown in the global economy… Overall, Eramet is counting on an investment plan of around 1.9 billion euros over the period 2024-2026 to strengthen cash-generating activities and prepare for future growth mainly in the energy transition. The firm has clarified that it has no intention of teaming up with Imerys. “Eramet has not considered partnering with Imerys in lithium, we have our own projects,” said Christel Bories, CEO of Eramet.
* STMicroelectronics gains 9%. In addition to the decline in bond rates, the semiconductor sector was sought after this week in the wake of Infineon. The German chipmaker’s forecasts for the 2024 financial year are considered reassuring given the ‘lukewarm’ expectations of investors after its peers, Texas Instruments has ON Semiconductor, reported weak demand for chips used for industrial applications. Over the entire new financial year, Infineon forecasts growth in its revenues to 17 billion euros (more or less 500 million euros) after a level of 16.31 billion euros (+15%) for the closed financial year. The company said its main automotive segment will achieve double-digit sales growth for the fiscal year and the consumer electronics market is expected to recover later in 2024.
* Vallourec takes 8% after raising its annual gross operating income guidance in a favorable market environment in the Eastern Hemisphere region. The manufacturer of seamless steel tubes is now targeting an annual EBITDA of between 1.075 billion and 1.175 billion euros, compared to a range of between 950 million and 1.1 billion euros previously. In addition, Vallourec says it is aiming for 2023 to continue reducing its net debt compared to the third quarter of 2023. S&P Global has also once again raised the group’s long-term credit rating, from ‘BB-‘ to ‘BB’ . The outlook remains ‘positive’, a sign that the agency could further raise its rating.
Conversely, Clariane fell by 20%, abandoned after announcing a vast restructuring plan of 1.5 billion euros, including a capital increase, to restore its access to financing and strengthen its financial structure. In detail, the retirement home operator intends to carry out an AK next year, with preferential subscription rights maintained, for a gross amount of 300 ME (with the guarantee from Crédit Agricole Assurances of 200 ME), sell approximately 1 billion euros of gross income in 2024 and conclude a real estate partnership (covering the walls of 19 health and medico-social establishments in France) for an amount of 140 ME with CA Assurances. Several analysts downgraded their recommendation on the issue following these announcements, such as Kepler Cheuvreux and BNP Paribas Exane.
* Orpea fall of 16% after the launch of a capital increase with maintenance of shareholders’ preferential subscription rights for an amount of approximately 3.9 billion euros. Last week, the Paris Court of Appeal confirmed the decision of the Financial Markets Authority to authorize the Caisse des Dépôts to increase the capital of the company Orpea without launching a public purchase offer. The call to the market is part of the accelerated safeguard plan approved by the Nanterre Specialized Commercial Court on July 24 and aims to clear all of the company’s unsecured debt, amounting to approximately €3.9 billion.
* Valneva declines by 10%. Frédéric Grimaud will leave the ship. Ahead of the extraordinary general meeting of the company which will be held on December 20 in Nantes, the firm indicates that three current members of the Supervisory Board will not join the future Board of Directors: Ms. Johanna Pattenier, Ms. Sharon Tetlow and Mr. Frédéric Grimaud, current Chairman of the Supervisory Board. During this EGM, the shareholders will vote in particular on the recommendation of the Supervisory Board aimed at moving from the current two-level system of governance of the Company, with a Supervisory Board and a management board, to a single-level system based on a board of directors.
* Alstom stumbles by 5%, returning to the lowest since 2005. More than the publication of interim accounts without much surprise, the market is focusing on the major cost savings plan announced by the rail giant. The group will in fact launch an asset sale program of between 500 and 1 billion euros, cut 1,500 jobs and is considering a capital increase. Alstom will also not pay a dividend for the current fiscal year. The group thus intends to strengthen its balance sheet structure and aims to reduce its net debt position by an amount of 2 billion euros by March 2025. “Alstom’s negative free cash flow during this first half constitutes a clear call for change. Although demand remains at a sustained level, despite some volatility, our commercial performance has been weak,” said Henri Poupart-Lafarge, CEO of Alstom. “It is too early to say which assets will be sold,” the manager stressed in an interview with Bloomberg, adding that a capital increase is an option but not the group’s preference.
* Coface loses 5%. The reinsurer reported revenues of 458 ME in the third quarter, down 3.3% as reported and 0.3% excluding currency effect, lower than the consensus (492 ME). Over nine months, net profit stood at 189.7 million euros (+2.1%) for revenues of €1,418 billion, up 7.1% at constant scope and exchange rates and 5.3%. in published data. Management said it is actively working on its next strategic plan which will be presented to investors on March 5, 2024.
* Technip Energies returns 3%, victim of the drop in oil prices and an analyst note. Barclays has in fact lowered its recommendation on the Engineering and Technology company by two notches, from ‘overweight’ to ‘underweight’. The objective is maintained at 26.5 euros.