They want 7,100 points! Fnac Darty drops

TREND

(Boursier.com) — 7,100 points are at stake today in the CAC 40, which hit this symbolic level yesterday for the first time in a session since February 10, 2022, before closing lower. As the afternoon approaches, it is trending towards the level at 7,085 points (+0.15%), after an intervention above, at 7,101.82 points at the start of the session.

The Paris index is now up 10 sessions from the first 12 sessions of 2023 and has gained over 9%! The prospect of a European Central Bank rate cut to 25 basis points is gaining traction among monetary institution officials, with FedWatch now showing a 93% chance of a quarter-point reversal, according to Bloomberg and the CME barometer.

Eurostat’s final data shows that annual inflation in the euro zone decreased from 10.1% in November to 9.2% in December. Inflation thus returns to its lowest level since August 2022, largely due to continued declines in energy prices. On a sequential basis, prices finally fell 0.4%, versus a previously reported -0.3%, after falling 0.1% in November. Annual “core” inflation, which excludes the most volatile elements, was confirmed at 5.2%, a record high, after 5% in November. The ECB should pay attention to this indicator at the next monetary policy meeting.

WALL STREET

Dow Jones futures are currently in positive territory.

ECO AND CURRENCIES

United States of America:
– US Producer Price Index. (14:30)
– Retail. (14:30)
– American industrial production. (15:15)
– Shares and sale of companies. (16:00)
– NAHB US Housing Market Index. (16:00)

Euro/dollar parity reached $1.0806 this morning. A barrel of Brent oil is sold at $87.07. An ounce of gold sells for $1,913.

INCREASING VALUES

Renault (+0.50% to €38.22) saw its global sales fall by 5.9% in 2022, the fourth year in a row of declines. The automaker sold 2,051,174 cars and vans worldwide last year. A day earlier, the group reported a 9.4% drop in sales of its core brand Renault, but the performance of its low-cost Dacia brand (+6.8% to 573,837 units) led to a decline in sales for the year.

Pierre and Holidays (+5.60% to €1.33) showed sustained momentum with a +19.4% increase compared to the first quarter of 2021/2022, affected by the uncertain health context in Q1. This activity is consistent with the goals of the period and supports the group in implementing their action plans. After a +15.9% increase recorded in the summer season, accommodation revenues in the 1st quarter of 2022/2023 increased by +19.6% compared to the same quarter of the previous financial year and amounted to €272.4 million.

BNP Paribas (+2% to €60.65) BMO Financial Group has confirmed that it has received the necessary regulatory approvals to complete its acquisition of Bank of the West. BNP Paribas. The deal is expected to close on February 1. The final financial impact of the transaction will be provided on February 7 with the publication of BNP Paribas’ annual results for 2022.

Eramet (+2.70% to €91.60): Indonesian officials said the mining group and BASF had finalized a $2.6 billion partnership deal in the country for a facility to process nickel from electric vehicle batteries.

Eurofins Scientific (+0.60% – €66.46) announces the acquisition of assets to establish a fully equipped state-of-the-art laboratory campus at Genome Valley in Hyderabad, India. Procurement to major global and Indian pharmaceutical clients as well as synthetic organic chemistry, analytical R&D, bioanalytical services (for large and small molecules), in vivo pharmacology, safety toxicology and formulation R&D.

Nikox (+0.90% – EUR 1.12) had cash and cash equivalents of EUR 27.7 million on December 31, 2021, compared to EUR 42 million on September 30, 2022, and EUR 25.6 million on September 30, 2022. The company raised funds through a category-only capital increase in November 2022 and estimates to be funded through the second quarter of 2024 based solely on NCX 470 development.

Capgemini (+2.15% to €174.95): Peak at the top of the CAC40 on Wednesday. SSII was upgraded by Barclays, which raised its value recommendation to “overweight” due to a more sustainable business mix and usage. The analyst believes that Capgemini’s growth should also be supported by prices. According to the broker, the stock’s pullback appears overdone and the current level offers an attractive entry point. The target was raised from 190 euros to 210 euros.

FALLING VALUES

Fnac-Darty (-6.60% to €34.14): The group’s annual turnover will be around €7.945 billion and will show an estimated -1.2% decrease compared to 2021 in published data and -1.9% on a like-for-like basis. This change is mainly due to a decrease in sales recorded in December of around -55 million euros, which mainly reflects lower sales volume in the categories of small appliances and computer equipment, which performed better last year. Despite this, the Group still shows +7% growth in its annual sales compared to the 2019 pro forma level. Gross margin should reach 30.3% in 2022, an increase of approximately +80 basis points compared to 2021, mainly due to a product/service mix effect, particularly strong sales performance books, including Darty Max and will be positive with ticket sales. . Current Operational Output is estimated at approximately 230 ME. The current operating margin should be roughly flat for a year at around 3%. Free operating cash flow is slightly negative at around -30 ME. The difference with the prior year’s free cash flow is explained by a decrease in EBITDA including long-term items related to the current year’s operating profit for about one third. When launching its day-to-day strategic plan in February 2021, the Group announced its intention to generate a cumulative free operating cash flow of approximately €500 million over the period 2021-2023 and at least €240 million on an annual basis from 2025. After generating free cash, assuming a level of free cash flow from operations of 170 ME in 2021 and -30 ME in 2022, The group considers it difficult to achieve its target of 500 million euros of cumulative free operating cash flow during the period 2021-2023.. As a result, the Group extends the same goal during the period 2021-2024. Fnac Darty maintains the ambition to generate free operating cash flow of at least 240 million euros on an annual basis from 2025 onwards..

LATEST EARNINGS/RESULTS RELEASES…

Theranexus, SMAIO, A soldier, Kalray

LATEST “RECOS” FROM ANALYSTS…

The Goldman Sachs sale continues Danone With a revised target of 49 to 48 euros.

JP Morgan “underweight” JCDecaux With a revised target of €15.60.

Jefferies ‘underperforms’ L’Oreal With a target price rising from €280 to €293

MARKET INFORMATION

Theradiag : the offer is open until January 31.

Eurofins Scientific raised 600 ME during the last public hybrid bond issue.

SHORT

classic It will take control of the Timar Group in Morocco.

DeltaDrone Delta is selling the remainder of its stake in Drone International.

GTT : new orders!

Hopscotch : Discussion for share on Vero.

Stellantis : Nickel sulfate supply contract with Terrafame of Finland.

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