Middle session Paris: it is difficult to go higher
TREND
CAC40 fails to reach 7100 points, starting to fall again after three previous sessions of slight advance. The main index of the Paris stock exchange gained 0.4% to 7,020 points at the end of this Wednesday morning. It is still 300 points off its all-time record of 7,384.86, having advanced 14 sessions in the first 17 of 2023 before today’s session.
Market participants’ sentiment remains tied to hopes of a lull in central bank interest rate hikes and a favorable outlook for the reopening of China’s economy.
Eurozone PMI activity released yesterday showed an unexpected increase in January, which could ward off the threat of a serious recession.
In terms of corporate finance releases, the season will start to pick up tomorrow in the CAC40 (notably LVMH), while in the US Tesla, Boeing and IBM, among others, will present fourth quarter results today.
INCREASING VALUES
* Vallourec (+4% to 13.5 euros) signed a new long-term contract with Petrobras for the supply of OCTG pipes. The three-year contract covers the supply of premium seamless OCTG tubing, associated accessories, as well as specialized physical and digital services, representing a volume of more than 110 kt of products and accessories.
* MedinCell (+4% to €7.76) announced the start of a Phase 3 study for a second antipsychotic using its long-acting injectable product technology (mdc-TJK program). A US study will evaluate the efficacy and safety of the first subcutaneous long-acting injection (LAI) formulation of olanzapine for the treatment of patients with schizophrenia. Integration of the first patients is expected in the coming days. MedinCell’s partner Teva (TEV-44749), which is funding and managing the product’s regulatory development, has just released details of the protocol. mdc-TJK follows on from mdc-IRM (risperidone LAI), the first subcutaneous antipsychotic based on MedinCell technology, currently under regulatory review by the US FDA and expected to be available in the first half of 2023.
FALLING VALUES
* Alstom fell 1.2% to 26.4 euros despite a strong quarterly performance. The rail group reported a turnover of 4.22 billion euros in the three months to the end of December, an increase of 8%. The company’s CEO, Henri Poupart-Lafargue, said: “The market environment remains positive, clients are confirming their investment plans in all regions.” Orders for the third quarter increased by +13% to 5.15 billion euros, with Europe accounting for the largest share. Data above market expectations. Revenues rose 8% to 12.3 billion euros in the first nine months. The forecast for 2022-2023 and mid-term 2024/25 has been confirmed.
* Interparfums fell by 2.6% to 60 euros. TP ICAP Midcap lowered the file to “hold” at €61.5 in the viewfinder. The broker explains that the group will update its 2023 guidance when it publishes its 2022 results on March 1. He is hoping for an increase in revenue target with MopC management retaining. Given the materialized course and the achievement of the target price, the broker now recommends carefully maintaining the value. Yesterday, Oddo BHF downgraded its recommendation on the move to “neutral” “in light of the course taken by the title”. “Fundamentally, Interparfums remains a value to hold over time,” the analyst clearly emphasized.
* Renault returns 0.3% to 37.2 euros. However, Bernstein upgraded its view on the producer to ‘outperform’ from ‘market perform’, with a target of €45, or €9 more than previously. AlphaValue, for its part, raised its target from 27.4 euros to 70.5 euros, switching from “sell” to “buy” in the headline. Morgan Stanley (“overweight”) also raised the stock to 42 euros from 38 euros, while Goldman Sachs (“neutral”) raised its target from 38 euros to 39 euros. With these changes, 13 analysts are positive on the stock, 9 are neutral and only 1 is short. The average 12-month target is set at 45.17 euros (Bloomberg consensus).
* Atos (-1% – 11.56 euros) has entered into exclusive negotiations with Mitel Networks (Mitel) for the sale of its unified communications and collaboration services business (Unified Communications & Collaboration, ‘Unify’). This is a new step in the implementation of Atos’ asset disposal program as announced at the Group’s Capital Markets Day in June 2022. “We are pleased with this announcement, which marks a new important step in the implementation of our investment program. brought us closer to the goal of about 700 million euros that we set 7 months ago. This is further proof that we are implementing our ambitious transformation plan at a steady pace,” said Atos Deputy CEO Diane Galbe.
