- European markets drop ahead of US CPI report
- Siltronic expects a significant drop in EBIT in 2024
- Michelin gains after earnings release
Overall market situation:
Tuesday's session on European stock markets brings a deceleration of the bullish momentum observed in recent sessions. At the moment, almost all indices from the Old Continent are losing in intraday terms. Germany's DAX is trading 0.61% lower, France's CAC40 0.47% lower and Italy's FTSE MIB 0.43% lower. The topic of the day to which investors will be eagerly reacting is today's US CPI data, which will be released at 01:30 pm GMT.
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European companies trading during Tuesday's trading session are mostly down at the moment. Source: xStation 5
The German benchmark DE40 is losing close to 0.5% during Tuesday's session and is trading within the limits set by the 100-period moving average (purple curve on the chart, H4 interval). Source: xStation 5
News:
Siltronic (WAF.DE) shares are losing more than 7.5% in today's session after the German chip equipment supplier said it expects its EBIT to fall "significantly" in 2024. Sales in 2024 will be in the 'region' of the previous year, due to weakness in demand as a result of increased customer inventories and the associated further deferral of delivery volumes.
Siltronic reported preliminary sales for 2023 of €1.5bn, while the consensus expectation for 2024 is €1.64bn. Analysts expect the consensus EBITDA estimate for 2024 to fall by around 15-20% due to this news.
Warburg Research rates Zalando (ZAL.DE) shares with a "buy" rating. Target price of EUR 45. According to the bank's analysts, the company's long-term growth will remain intact this year and significant margin improvement potential is seen in the medium term.
Citi is raising its rating on GSK (GSK.UK) shares to 'buy' for the first time in seven years. The new target price is £21 per share (previously it was £17).
Michelin (ML.FR) shares jumped 4.3% after the French tyre maker reported a record annual profit and announced a new share buyback plan. The group reported a record operating profit of €3.57 billion for 2023, beating analysts' forecast of €3.42 billion. The share buyback planned for 2024-2036 is expected to reach €1bn.
