CAC 40 Rises 0.78% Midday, Boosted by Equipment and Luxury Sectors

Legrand, Michelin, and EssilorLuxottica drive the index higher

Electrical equipment company Legrand takes the top spot with a surge of 6.29% to 153.75 euros. The group unveiled its consolidated 2025 accounts this Thursday, showing a revenue of 9.5 billion euros and setting its financial schedule for 2026. This release, confirming the strength of the specialist in building electrical and digital infrastructure, seems to have convinced investors, who are also appreciative of the visibility the group provides for the current year.

Following closely, Michelin advances by 6.05% to 34.33 euros after its annual results. In 2025, the tire manufacturer recorded an operating profit of 2.9 billion euros at constant exchange rates and a free cash flow before acquisitions of 2.1 billion euros, despite a 4.7% decrease in volumes, which was partially offset by an enhanced sales mix. Analysts have reacted with mixed opinions: Oddo BHF raised its price target from 30 to 32 euros while maintaining its neutral recommendation this Thursday, while JP Morgan also increased its target from 28 to 30 euros on Monday, moving to neutral. Additionally, the stock benefits from the positive impact of recent acquisitions of Flexitallic, announced in early February, and Cooley, finalized in January, which strengthen the Polymer Composite Solutions division of the Clermont-based group.

Also on the podium is EssilorLuxottica, rising by 5.62% to 264.90 euros. The optical giant reported particularly strong 2025 annual results, with a revenue of 28.5 billion euros, up 11.2%, driven by a record 18.4% growth in the fourth quarter and sales of AI-enhanced eyewear exceeding 7 million units. Analysts remain confident: JP Morgan confirmed its overweight recommendation on Thursday despite adjusting its target from 345 to 335 euros, while BNP Paribas Exane raised its target from 360 to 365 euros, maintaining its outperform rating.

Stellantis and Hermès Join the Winners' Circle

Automaker Stellantis is up 2.91% at 6.60 euros, attempting to recover after a difficult week. Last Thursday, the group announced massive exceptional charges of 22.2 billion euros for the second half of 2025 to realign its product portfolio with customer demand, while suspending its 2026 dividend. This announcement heavily impacted the stock, but investors now seem to be focusing on more positive aspects: an estimated billing of 1.5 million units for the fourth quarter of 2025, up 9% year-over-year.
The partnership with LG Energy Solution on NextStar Energy, also revealed last Thursday, further indicates a strategic restructuring effort, although analysts remain cautious. Morgan Stanley lowered its price target from 9.20 to 7 euros on Monday, maintaining an equal weight recommendation, while Wells Fargo took a tougher stance by reducing its target from 6 to 5 euros on Sunday, maintaining an underweight rating.

Meanwhile, Hermès is gaining 2.88% at 2,181 euros, following its excellent 2025 results unveiled this Thursday. The luxury goods manufacturer reported sales of 16 billion euros, up 9% at constant exchange rates, with operating income rising 7% to 6.6 billion euros. These performances confirm the resilience of the family-owned group's model, which continues to attract a global high-end clientele despite an uncertain macroeconomic environment.

Sanofi Drops Sharply, Engie and Services Under Pressure

Contrary to the general trend, Sanofi has dropped by 6.04% to €77.57, registering the largest loss of the session by far. The pharmaceutical company announced on Thursday the appointment of Belén Garijo as the new CEO, a change in leadership that seems to unsettle investors. This news comes as the group is engaged in several strategic operations: on Monday, it completed the acquisition of Dynavax Technologies Corporation, including its delisting from the NASDAQ; on Sunday, the rilzabrutinib was designated as an innovative therapy in the United States; and earlier in February, the venglustat succeeded in the phase 3 LEAP2MONO study for type 3 Gaucher disease. Despite these advancements, the market appears to question the new management's ability to follow through on its roadmap in a highly competitive sector.

Engie has declined by 2.70% to €25.97, impacted by profit-taking after several weeks of gains. The energy company has not released any significant information recently that would explain this downturn, as its latest announcements—the biomethane contract with PepsiCo UK at the end of January and the hybrid solar-storage project in India in mid-January—have now been priced in. Eurofins Scientific is down 2.04% to €63.38 and Bureau Veritas has fallen 1.96% to €27.02, reflecting a sector rotation away from services. Lastly, Capgemini is down 1.44% to €102.80 despite a string of strategic announcements regarding sovereign cloud partnerships with Microsoft on Tuesday, AWS on Sunday, and Google Cloud last Thursday. These digital sovereignty initiatives, which are crucial for the future of the IT services group, are not enough to convince investors in the short term, who seemingly seek more immediate catalysts.