The CAC40 regained 1.24% to 7,319 pts at the close, ending four sessions of decline… Operators remain attentive to the situation in the United States where an agreement on the debt ceiling is still being made wait, even if, according to the latest news, some progress has taken place… In the wake of very favorable sales forecasts from Nvidia, European “tech” has also stood out. Casino, on the other hand, fell after the announcement of the opening of a conciliation procedure with its creditors.
On the oil market, crude is up slightly with a barrel of Brent trading at $76.55 in London. On the currency market, the dollar index fluctuated around 104 pts, while the euro fell to $1.07 between banks.
RISING VALUES
Waga Energy soars nearly 19%. The company started its first renewable natural gas (biomethane) production unit in Canada in partnership with Énercycle and Énergir. Waga Energy and Énercycle have begun injecting renewable natural gas (RNG), also called biomethane, into Énergir’s network by starting up the WAGABOX(R) unit installed at the waste landfill site in Saint-Étienne-des -Grés (Quebec, Canada). This unit has the capacity to inject up to 130 GWh of RNG per year, i.e. 12.4 million cubic meters each year, into the gas network, thus contributing to the objectives set by the “Plan for a green economy” of the Government of Quebec. .
Coface jumped 10%. The title had not recorded such a daily increase for more than a year! The credit insurer had a very good start to the year with net income (group share) of €61.2 million, up 17%, for consolidated revenue of €475.1 million, up +11.4% at constant scope and exchange rates. Insurance premiums increased by 10.9% like-for-like and the combined ratio net of reinsurance stood at 66.2%, an improvement of 1.8 ppt over one year and 7.2 ppt compared to the previous quarter. Following this good publication of results, Oddo BHF raised its forecast for NR 2023 by 7% to 226 ME. To ‘outperform’ on the value, the analyst notes that Coface continues to benefit from favorable operating dynamics, with a good combined ratio and growth that remains sustained (even if it should logically slow down by the end of the year) . Based on the current price, the stock offers an attractive 2023 yield, estimated at 9.9%.
Aramis climbed another 9% with Forvia (+7%) and Valeo (+5%), supported by more favorable broker ratings. Jefferies has, in particular, awakened automotive suppliers listed in Paris by moving from ‘underperforming’ to ‘buying’ on the two French supplier groups. The broker explains that OEMs are beginning to benefit from a more favorable operating environment as the post-pandemic earnings decline cycle comes to an end. Suppliers have significantly underperformed automakers over the past three years and their margins are “depressed”. The broker raised its price target on Faurecia from 16 to 24 euros and from 15 to 22 euros on Valeo.
Atos wins 5%. On May 25, the United States Court of Appeals overturned a lower court ruling for the Southern District of New York in the ongoing litigation between Syntel and Cognizant subsidiary TriZetto. It found Syntel, now part of Atos, liable for $570 million in damages due to misappropriation of trade secrets and alleged copyright infringement. The case started in 2015, before Syntel was acquired by Atos in 2018. Atos maintains its assessment, as previously communicated, that the maximum amount of damages legally available to TriZetto is approximately 8.5 million of dollars. This favorable decision raises considerable uncertainty for Atos and its stakeholders, underlines the digital services company.
Gaussin (+5%) signed a partnership contract with Plastic Omnium (+4%) aimed at accelerating the development of Gaussin’s hydrogen range with the integration of complete Plastic Omnium H2 systems within APM vehicles. This partnership should make it possible to increase the performance of Gaussin vehicles and accelerate their marketing. For Plastic Omnium, the agreement increases the field of application of its technology and places its know-how at the service of pioneers in zero-emission mobility. The contract signed by Gaussin and Plastic Omnium provides for the cooperation of the two players with a view to integrating Plastic Omnium’s complete hydrogen systems into Gaussin’s APM vehicles. Innovation is at the center of this partnership and thus opens up promising prospects, with a hydrogen solution for applications.