quarterly CAC40 publications start well with LVMH

quarterly CAC40 publications start well with LVMH
quarterly CAC40 publications start well with LVMH

THE TREND

After a start to the session in the red, the CAC40 is gradually regaining ground and is up 0.3% at midday around 6,570 points. Inflation remains the source of concern at the moment with a confirmation of its strength this morning: consumer prices jumped 4.1% in September in Germany, the fastest pace in nearly three decades! According to final data from the Federal Statistical Office, energy was notably 14.3% more expensive than last year. On the same theme, we will learn about the consumer price figures in the United States for the month of September at midday. The session will also be marked for the kick-off of the results of the big American banks with those of JP Morgan expected before the opening of Wall Street.

Oil prices are still struggling to come down, with a barrel of Brent still trading above $ 83 and WTI above $ 80.

RISING VALUES

* Hesitant at the opening, the title LVMH is now granted 2% to 647 euros, the day after a new publication of choice. The group thus consolidates its position as the leading market capitalization of the CAC40. Although less dynamic than in the first half, the sales of the world number one in the luxury sector still increased by 20% in organic data in the third quarter, to 15.51 billion euros. The group’s main source of profits, the fashion and leather goods division posted organic growth of 24% over one year and 38% compared to the same period in 2019, before the coronavirus pandemic. The consensus was for a 21% increase. LVMH is counting on the dynamism of its brands and the talent of its teams to further strengthen its lead in the global luxury market in 2021. LVMH’s fashion and leather goods division, an indicator of the luxury industry, exceeded expectations in the third quarter, which is reassuring and shows ‘remarkable consistency’, according to Jefferies (‘buying’). For the broker, LVMH signs another ‘solid quarter’ and “is once again doing what it is doing very well”. The owner of Dior and Louis Vuitton is a ‘structural winner’.

* Stellantis gains 1.4% above 17 euros. Peugeot has just launched the international advertising campaign for its new 308, which is arriving in France. An open house weekend will take place from October 16 and 17 and will allow customers to test the driving pleasure of this new compact sedan. Peugeot is expressing its ambition to move upmarket in an ultra-competitive market with this new generation, which stands out for its strong aesthetic personality. This is reflected in particular by an elongated front hood and a new grille featuring the brand’s new lion logo. The 308 range will include new electrified versions and will be manufactured in France, at the Mulhouse plant.

* Sopra Steria climbed 3.5% on Wednesday to 158.7 euros, while the group signed an exclusive negotiation agreement with a view to acquiring EVA Group, a company specializing in cybersecurity. EVA Group plans to achieve a turnover of around 33 ME in 2021, mainly in France. Its activities revolve around consulting, auditing, integration, expertise and training. Its 240 consultants and experts work with 80 active clients, mostly large groups from the CAC 40, SBF 120 and the public sector.

* Aperam climbs more than 2% to 48 euros while the group expects adjusted EBITDA in the 3rd quarter to return to a level comparable to that of the 2nd quarter. The group also anticipates a comparable free cash flow for the 3rd quarter despite a higher working capital requirement … Among the latest brokers’ opinions, Oddo BHF revalued the case from 70 to 75 euros (‘outperform’), while the 9-month results will be published by Aperam on November 12th.

* Spie (+ 8% to 21.2 euros) withdrew from the competitive process for the acquisition of Equans. Spie had made a non-binding offer for the acquisition of Equans on September 6, and was subsequently selected by the seller to participate in the due diligence phase. Spie considers that the information made available within the framework of this ‘due diligence’ process is not sufficient to enable it to formulate, within the allotted time, a binding offer in accordance with its requirements and objectives.

FALLING VALUES

* Air France KLM fell 1.3% on 4 euros on Wednesday, while the broker Barclays lowered its price target from 5.5 to 4.4 euros on the file in a still unstable context.

* Renault (-0.4% to 32.6 euros) and the representative trade unions yesterday continued the negotiations launched on September 16 with a view to concluding a three-year social agreement for France for the years 2022 to 2024. The group reaffirmed its ambition to assign 9 new vehicles to French factories, thus aiming to produce more than 700,000 vehicles per year. In addition, the group reaffirmed its desire to proceed with more than 2,500 recruitments and 10,000 training and retraining to acquire new key skills.

* Sodexo fell 2.1% to 77.2 euros. Exane BNP Paribas downgraded Sodexo to ‘underperforming’ with 75 euros in the sights.

 
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