CAC 40 Remains Steady at Midday Despite Stellantis's Sharp Drop

Vinci and Eiffage drive the construction industry forward

The top of the rankings is largely dominated by the French construction giants. Vinci claims the first spot with a leap of 7.49% to 131.25 euros, driven by exceptionally strong annual results. The group unveiled its 2025 performance this Friday, highlighted by record free cash flow, solidifying its position as the global leader in concessions and construction. This announcement comes just days after securing a 144 million euro contract in Jamaica to enhance drinking water networks, illustrating the group's business momentum. Analysts at Jefferies reacted by raising their price target from 138 to 143 euros, maintaining their buy recommendation.

Eiffage follows closely with a rise of 3.54% to 131.55 euros. Vinci's direct competitor is also benefiting from a stream of news, notably the recent acquisition of the German company HTW Engineers by its subsidiary Énergie Systèmes, announced on Tuesday. This operation is part of Eiffage's strategy to strengthen its presence in Germany, a few weeks after securing a 183 million euro contract for the construction of a bridge over the Kiel Canal. MedioBanca set a price target of 135 euros for the stock on Monday, with a neutral recommendation.

Bouygues also advances by 2.64% to 47.79 euros, reaching a high not seen since 2008. These three stocks are benefitting from a potentially favorable economic environment.

ArcelorMittal, Bouygues, and Engie lead the pack

ArcelorMittal, the steel giant, is up 3.41% at 50.68 euros, buoyed by the release of its 2025 annual results this past Thursday. The company reported a net profit of $3.2 billion with an EBITDA of $6.5 billion, while increasing its annual dividend to $0.60 per share for 2026. These figures prompted Goldman Sachs and Deutsche Bank to adjust their price targets to 39 euros and 57 euros, respectively, reflecting increased confidence despite the persistently challenging global steel market.

Engie is up 1.73% at 25.91 euros, in a market that remains focused on the group's renewable energy strategy. However, JP Morgan downgraded its recommendation from overweight to market performance on Wednesday, lowering its price target to 24.50 euros, which doesn't appear to weigh on the stock this Friday. The energy company secured a hybrid project in mid-January, comprising 200 MW of solar power and 100 MW of storage in India, reaffirming its international expansion efforts.

Stellantis plummets as the automotive and banking sectors struggle

Conversely, Stellantis is experiencing a significant crash with a plunge of 23.48% to 6.25 euros, by far the largest drop on the CAC 40. The automaker announced this Friday a record of 22.2 billion euros in exceptional charges in the second half of 2025 to realign its portfolio with demand, and the suspension of its 2026 dividend. This drastic decision highlights the group's struggles to adapt to the electric transition and increased competition.

Concurrently, Stellantis indicated that LG Energy Solution will acquire full ownership of NextStar Energy, marking a setback in its battery strategy. Even a 9% increase in fourth-quarter billings was not enough to reassure stunned investors. In its wake, Renault fell 3.45% to 30.83 euros, hit by analyst downgrades: Goldman Sachs lowered its target from 36 to 31 euros on Wednesday, while Morgan Stanley downgraded its recommendation outright to underweight with a target cut from 47 to 33 euros on Monday.

Société Générale fell 4.61% to 70.80 euros, despite the publication this Friday of record results for 2025 with 27.3 billion euros in revenue and 6 billion in net profit, showing a ROTE of 10.2%. The bank had announced an increased distribution of 4.7 billion euros and raised its 2026 target, but this performance seems already priced into its shares.

In line with concerns about the tech sector in the United States, Dassault Systèmes lost 2.90% to 22.10 euros and Capgemini 2.37% to 115.25 euros, with the latter also affected by Tuesday's announcement of the sale of an American subsidiary related to local immigration agency activities, which had fueled controversy earlier in the week. Thus, the French tech sector remains under pressure amid a context of tight valuations.