The Paris market continued its upward movement, closing the week above the 7,000 mark.
Registering at 7,023.50 points, the CAC 40 index has already gained 8.5% since 1um January, after falling 9.5% in 2022.
The Paris Stock Exchange thus returns to its best level since February 2022 and around 5% of its record reached before the start of the war in Ukraine.
Investors were sensitive to the deceleration of inflation in the United States (+6.5% per annum, in December), leading to hopes for a less restrictive monetary policy by the US Federal Reserve.
In France, the rate of price increase also slowed down (+5.9% over one year, in December), according to the final data published by INSEE. Something to put a smile on operators faces.
In these conditions there were significant rebounds, such as Atos (+17.9% in the week), SES Imagotage (+12.7%), Sartorius Stedim (+10.6%) and Accor (+9.9%).
Conversely, Ubisoft fell 19.4% after a severe earnings warning. Hence the importance of realizing its benefits regularly.
Our recommendations on 26 stocks
Bloc "A lire aussi"
BNP Paribas
According to the unions, the French banking group is studying a voluntary exit plan in its consumer credit branch, which has 5,200 people in about thirty countries. A sign that it is not so easy to take advantage of the increase in interest rates as payment delays increase due to inflation and the decline in purchasing power. In addition, the market is awaiting the completion of the Bank of the West sale ($16.3 billion), as well as details of Bank of the West’s share buyback and repurchase plans ($16.3 billion). BNP Paribas. To maintain
Boiron
The recovery of world leader in homeopathy that’s not all: new product launches are supporting the business and its diversification into CBD remains promising. But the 2023 expected earnings cap ratio has risen to 16.3, a more challenging level. The shareholder will take part of its profits and keep the balance, because the balance sheet is strong and cash represents 37% of the market capitalization. The expected return for 2023 is around 2.5%. To maintain
Bouygues
The title returns 20% in three years. Bouygues deserves better consideration. The diversity of its activities is a guarantee of resilience in difficult times. The expected dividend this year shows a yield of more than 6% at the current price. Finally, the integration of Equans, Engie’s multi-technical services, could be a strong value catalyst. Acquire
GTC
Forecasts raised Acquire
Covivio
A balanced portfolio Acquire
Dassault Aviation
After the excellent performance of the stock market last year (+66.5%), it takes a break, hampered by the disappointment with the deliveries of Falcon. In 2022, Dassault Aviation delivered 32 business jets, three fewer than management’s target. At the same time, customers received 14 Rafales, including 13 overseas. A performance in line with expectations, knowing that 25 combat aircraft had been delivered in 2021. Multiplying the export success, the family group could soon sell 16 Rafales to Colombia and 26 new aircraft to India. Acquire
Elis
Bpifrance has just acquired a stake of more than 5% in the industrial laundry group. The public investment bank says it is convinced “of the sustainable and profitable growth potential ofElis“. He wishes to support the company in the long term and will be represented on its supervisory board. To maintain
Europapi
Following the announcement of the cessation of prostaglandin production in Budapest and the downward revision of its earnings forecast for 2022, Europapi announces a new investment of 40 million euros in France for the production of vitamins B12. The stock remains attractive due to its defensive profile in a blind market. Let’s stay positive. Acquire
Eurofin Scientific
But Deutsche Bank has just revised its price target from 80 to 58 euros. After the earnings linked to the Covid pandemic, analysts expect a decline in net earnings per share in 2023 for the second consecutive year (from 5.29 euros in 2021 to 3.54 euros expected by the consensus this year). The title Eurofin Scientific appears too expensive, 18 times the estimated net income for the current year. To sell
getlink
Channel tunnel operator was cheered during the end-of-year celebrations. Le Shuttle carried 24,742 cars between December 16 and 18, an increase of nearly 20% over the same period a year earlier. It was its best December weekend since 2019. That bodes well for traffic in 2023. Acquire
Ipsen
New strategic acquisition To maintain
Interparfums
Given the always high demand, the managers ofInterparfums have further raised their prospects for the financial year 2022. They are now aiming for a turnover of between 705 and 710 million euros while the operating margin is expected to exceed 17%. At 42.2x earnings expectation for 2023, the valuation is getting a little too stretched. To maintain
Lectra
Investors appreciate the excellent resilience of the results in a context of uncertainty that does not favor investment. A reopening of China would be beneficial Lectra, which benefits from the appreciation of the dollar. We can place ourselves before the announcement of a new three-year strategic plan on February 9th. Acquire
cdl
Between September and November 2022, the group’s turnover increased by 17.4%, to 1.5 billion euros. This trend is linked to a positive price effect, while volumes fell by 6.8%, mainly due to the avian flu. The leaders of cdl maintained its annual revenue forecast of €5.8 billion with a recurring operating margin above 4.5%. To maintain
St. Gobain
Agile in crisis Acquire
Sodexo
The group suffers from persistent difficulties in the renegotiation of public contracts in France in a context of inflation. Post-Covid, the rebound in the activity of Sodexo it remains strong, however, with organic sales growth of 12.3% in the first quarter of the fiscal year ended August 2023. To maintain
Sleep
An unattractive takeover bid Don’t bring your titles
Television
Half-mast audience for TF1 and M6 in 2022 Keep Disney, M6, Netflix and Vivendi Sell NRJ and TF1
Thales
Railway transfer delayed To maintain
TFF group
Resumption of activity To maintain
Vivendi
Change of OCS on Canal+ To maintain