After returning to its pre-Covid-19 level in 2021, Lindt & Sprüngli continued to grow last year. Buoyed in particular by its business in the United States and approaching the 5 billion franc mark in revenues, the Zurich chocolate maker increased its sales by 8.4% compared to the previous year to 4.97 billion francs. Despite a market environment considered to be difficult, organic growth stood at 10.8%, the chocolate manufacturer based in Kilchberg on the banks of Lake Zurich announced on Tuesday. All regions contributed to the increase in sales, in particular the countries of the "rest of the world" zone and North America, which recorded increases of 16.6% and 15.7% respectively. The performance exceeded analysts' expectations. Referring to its profitability for the 2022 financial year, Lindt & Sprüngli stated it was confident of achieving the target operating profit margin (Ebit) of around 15% communicated along with the half-year results. For the current financial year, which represents a new challenge due to the current inflationary environment, the chocolate maker anticipates sales growth of between 6 and 8%, which is in line with its medium and long-term goals. The operating margin is expected to increase by 20 to 40 basis points. Lindt & Sprüngli will reveal the detailed results for 2022 on 7 March.

The SMI gained 1.3 per cent to 11436 points on Monday. Of the 20 SMI stocks, 19 recorded price gains. The only loser was Logitech, declining by 0.4 per cent. 35.11 million shares were traded (previously: 45.1 million). Defensive stocks and cyclicals were equally sought after. Among the individual stocks, Credit Suisse (CS) added 1.7 per cent. Market participants referred to a report by the Financial Times. The Financial Times, citing unnamed sources, had revealed, the bank planned to cut more than 10 per cent of jobs in its European investment banking. UBS advanced 1.6 percent. Partners Group (+3.5 per cent) recovered from losses it had taken last week in response to the private equity firm's disappointing outlook. Temenos rose 8.9 per cent after activist investors had lobbied for the departure of CEO Max Chuard. The banking software provider has not yet named a successor. According to Citigroup, the news was well received. Meanwhile, the fourth-quarter figures, which were also published, faded into the background. According to analysts, sales were slightly below expectations, while profits slightly exceeded estimates. Ypsomed jumped around 10 per cent after Credit Suisse analysts upgraded the shares to Outperform.

European stocks edged higher in a muted opening session on Monday with U.S. markets closed for the Martin Luther King Day holiday. Hopes over weaker inflation--helped by falling prices and lower energy costs--have continued to support the recent rally in Europe. The Stoxx Europe 600 index gained 0.5% to 454.6 points. In Paris, the CAC 40 and the SBF 120 both advanced 0.3%, as did the DAX 40 in Frankfurt. The FTSE 100 in London added 0.2%. Investors will follow the statements of the euro zone finance ministers at the opening of the Davos Forum, where business leaders, politicians and central bankers from around the world will be meeting throughout the week. Energy producer TotalEnergies (-0.6%) approved the final investment decision on the development of the Lapa South-West project offshore Brazil, which represents an investment of around $1 billion. Jefferies lowered its recommendation on telecoms operator Orange (-2.2%) from "buy" to "hold" and reduced its target price from €12.40 to €10. Berenberg downgraded European aircraft manufacturer Airbus (-1.3%) from "buy" to "hold" and cut its target price from EUR 150 to EUR 120. For the financial intermediary, the complex environment facing the group in the short term is not sufficiently taken into account by the consensus. Arnaud de Puyfontaine, chairman of Vivendi's management board (+0.9%), has apparently resigned from the board of Italian telecommunications group Telecom Italia (+2.9% in Milan). Jefferies expects retailer Carrefour (+4.6%) to post sales growth of around 15% at constant exchange rates in the fourth quarter of 2022, up from 12% in the previous quarter. In addition, UBS announced it anticipates Carrefour to report strong annual sales on 14 February, largely due to accelerating inflation. Societe Generale raised its recommendation on oilfield services group CGG (+10.1%) to "buy" from "hold" and increased its target price to €0.92 from €0.91, according to data available on FactSet.

U.S. markets were closed on Monday for the Martin Luther King Day holiday.

Stocks in Asia were mixed, with Japan’s Nikkei 225 up 1.3% and the Hang Seng in Hong Kong down 1.3%. China’s Shanghai Composite slipped by 0.4%. Sentiment in the region is being weighed down by weak economic data from China. The Chinese economy grew by only 3.0 (2021: 8.1) per cent in 2022. This was due to Beijing's strict Corona measures, which had significantly burdened the country's economy with closures and production interruptions. The abandonment of almost all Corona restrictions should supposedly provide a boost for growth again in the current year. In Tokyo, investors are focusing on the two-day meeting of the Japanese central bank, which begins on Tuesday. In December, the Bank of Japan (BoJ) surprised investors with an expansion of the yield target for ten-year bonds. Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding more than 3 percent. Among automakers, Honda is gaining more than 2 percent and Toyota is adding almost 3 percent. In the tech space, Advantest is gaining more than 3 percent, Tokyo Electron is adding almost 3 percent and Screen Holdings is up more than 2 percent. In the banking sector, Mitsubishi UFJ Financial is edging up 0.2 percent, while Sumitomo Mitsui Financial and Mizuho Financial are edging down 0.1 to 0.3 percent each. The major exporters are higher. Canon and Mitsubishi Electric are gaining more than 1 percent each, while Panasonic and Sony are adding almost 2 percent each. Among the other major gainers, Taiyo Yuden and Mitsubishi Motors are gaining more than 4 percent each, while Resonac Holdings and Mazda Motor are adding almost 4 percent each. Yaskawa Electric, Nissan Motor, Denso and Yamaha Motor are up more than 3 percent each, while Z Holdings, Alps Alpine, Suzuki Motor and Nippon Sheet Glass are advancing almost 3 percent each. Conversely, Chiba Bank is losing almost 3 percent.

The Swiss bond market started the week weaker. The Swiss Bond Index, which serves as one of the key market indicators, slips by 22 bp to 126.33% after +39 bp on Friday. The 2-year Swiss government bond was yielding 0.910% while the 10-year Swiss government bond was yielding 1.095%. U.S. markets were closed on Monday for the Martin Luther King Day holiday.

Morgan Stanley raises Nestlé to Overweight (Equalweight) - 122 CHF
Jefferies lifts Sika target to CHF 292 (271) - Buy
CS lifts Ypsomed to Outperform (Neutral) - Target CHF 235 (165)

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