Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move in your up today. I'm Caroline Hepka with
Speaker 3: Tom McKenzie, I joined by Blomberg Report to Chloe Malay.
Speaker 3: Good morning, Chloe. So it's Friday. Let's think about who's
Speaker 3: under pressure then? Today Delivery Hero. They are rallying though, why.
Speaker 1: Yeah, So they are under pressure from several big shareholders
Speaker 1: to potentially consider a cell of the business, or at
Speaker 1: least parts of the business. So this is coming at
Speaker 1: a time of growing consolidation within that food delivery industry,
Speaker 1: and it seems that investors in Delivery here are quite
Speaker 1: keen for the company to get in on that. The
Speaker 1: shares of that company have been on a big downward
Speaker 1: trajectory over the last few months. It's down nearly ninety
Speaker 1: percent from a peak in twenty twenty one. So this
Speaker 1: explains the first stration from shareholders that feel like the
Speaker 1: company isn't really making progress in streamlining its operations and
Speaker 1: trying to boost that performance. So Delivery Hero did try
Speaker 1: to sell its Taiwan unit to Uber, but that wasn't successful,
Speaker 1: So now investors are calling for a broader, perhaps more ambitious,
Speaker 1: strategic review of the entire portfolio. There's companies like Uber
Speaker 1: Metron in China or Grab in Singapore that could be
Speaker 1: potentially interested. So all of this m and A activity
Speaker 1: around deliver here is definitely something that we need to
Speaker 1: watch out for in the next few months.
Speaker 3: And an upgrade Chlory for easy Jets marketing action.
Speaker 1: Yeah, well it was well received by the markets. It
Speaker 1: was upgraded at Bernstein. The analyst said that EasyJet was
Speaker 1: a really cheap play for investors to benefit from the
Speaker 1: supply constraints in the airline industry, essentially because those constraints
Speaker 1: boost pricing, so that's a tailwind. And then the analyst
Speaker 1: also said that some of the headwinds faced by the company,
Speaker 1: including a rising expenses and reduce cash flow, are mostly
Speaker 1: priced in. They all said that easy Jet is currently
Speaker 1: trading at a very steep discount to Ryan Are, so
Speaker 1: essentially time to kind of get in on there. It's
Speaker 1: not all rosy for easy Jay analysts to have flaged
Speaker 1: that twenty twenty six will be perhaps quite tough on
Speaker 1: that budget airline after it reported earnings earlier this week.
Speaker 1: Summer is going to be very key because winter looks
Speaker 1: quite weak at the moment, but there's also very little
Speaker 1: visibility on summer so far. There's also ongoing air traffic
Speaker 1: control disruption and then also the hit from having to
Speaker 1: hold flights in the Middle East due to conflict. So
Speaker 1: definitely a few challenges ahead for that company in the
Speaker 1: next year.
Speaker 3: Okay, that's interesting. On what about Whitbread.
Speaker 1: Today, Yeah, so the that's the owner of Premiere in
Speaker 1: of course it was double downgraded at Bernstein as well,
Speaker 1: and that is because of the budget. So analysts have
Speaker 1: said that the government's adjustment of business rates the business
Speaker 1: rates system is creating a material hit to profitability for Witbread.
Speaker 1: So the Yuka government announced that the retail, hospitality leisure
Speaker 1: businesses with property values below five hundred one thousand pounds
Speaker 1: will enjoy permanently lower business rates, but that is funded
Speaker 1: by higher rates on larger properties. And the analysts have
Speaker 1: done a little analysis on this and they've found that
Speaker 1: a sample of sixty seven premier in hotels across England,
Speaker 1: most of those actually exceed at that five hundred K
Speaker 1: relief level, and so they met an impact on profit
Speaker 1: of up to thirty million pounds in a twenty twenty
Speaker 1: six twenty seven and then ninety million in twenty seven
Speaker 1: twenty twenty eight. So that essentially puts that company's efficiency
Speaker 1: plan at risk for the next few years and creates
Speaker 1: a really big hit to prompt.
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