1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,960 --> 00:00:18,680 Speaker 1: Okay, let's take a look at some stocks on the 5 00:00:18,680 --> 00:00:21,200 Speaker 1: move today in your Ontommakin's in London with Stephen count 6 00:00:21,239 --> 00:00:23,920 Speaker 1: in Brussels, were joined by Bloomberg reporter Chloe Melly. Chloe, 7 00:00:24,040 --> 00:00:27,920 Speaker 1: let's start with Loreal A downgrade this morning. What's the 8 00:00:27,920 --> 00:00:31,000 Speaker 1: impact being. Yeah, so it got downgraded at Jeffries to 9 00:00:31,080 --> 00:00:33,960 Speaker 1: an underperformed rating this morning. There were actually two names 10 00:00:34,000 --> 00:00:37,760 Speaker 1: in that kind of beauty cosmetics space getting downgraded. Biersdorf 11 00:00:37,840 --> 00:00:41,360 Speaker 1: was also downgraded to hold rating by Jeffries. So what 12 00:00:41,400 --> 00:00:44,199 Speaker 1: Aeles said was that growth was really normalizing in that 13 00:00:44,240 --> 00:00:48,320 Speaker 1: global cosmetic market after a period of quite strong growth. 14 00:00:48,880 --> 00:00:52,879 Speaker 1: And interestingly, they also said that catchcres like injectables like 15 00:00:52,920 --> 00:00:56,920 Speaker 1: supplements and weight loss drugs could potentially be somewhat kindabilistic 16 00:00:57,120 --> 00:01:01,120 Speaker 1: to some key names in the sector. The latest earnings 17 00:01:01,120 --> 00:01:06,440 Speaker 1: for Lorio were actually quite good. We saw cells expanding 18 00:01:06,480 --> 00:01:09,880 Speaker 1: more than expected in North America, a return to growth 19 00:01:09,920 --> 00:01:12,920 Speaker 1: in China, so it was quite positive over the summer. 20 00:01:13,440 --> 00:01:17,120 Speaker 1: But Jeffrey said that valuation for Lorial gave the company 21 00:01:17,160 --> 00:01:19,800 Speaker 1: too much credit at the moment and that market share 22 00:01:19,800 --> 00:01:23,560 Speaker 1: games were moderating. So it was down this morning on 23 00:01:23,600 --> 00:01:24,840 Speaker 1: the back of that downgrade. 24 00:01:25,040 --> 00:01:27,440 Speaker 2: Well, me while Chloe, we were looking at easy Jet 25 00:01:27,480 --> 00:01:29,839 Speaker 2: as well. What's the latest that we've heard from them? 26 00:01:30,400 --> 00:01:33,160 Speaker 1: Yeah, So JP Morgan cut the rating on easy Jet 27 00:01:33,160 --> 00:01:36,000 Speaker 1: as well this morning, cut it to a neutral rating 28 00:01:36,040 --> 00:01:39,480 Speaker 1: and it placed it on negative catalyst watch, and Liz 29 00:01:39,520 --> 00:01:42,520 Speaker 1: said that they were overall very cautious about the European 30 00:01:42,560 --> 00:01:46,440 Speaker 1: shorthol sector. So it said that more capacity growth for 31 00:01:46,680 --> 00:01:51,440 Speaker 1: destinations in the Mediterranean and for winter sun destination as well, 32 00:01:51,920 --> 00:01:55,080 Speaker 1: it meant that supply is now significantly ahead of pre 33 00:01:55,120 --> 00:01:58,480 Speaker 1: pandemic levels and therefore could outstrip demand. So that is 34 00:01:58,520 --> 00:02:02,360 Speaker 1: really hurting potentially could hurt pricing for companies like easy Jet, 35 00:02:02,400 --> 00:02:05,960 Speaker 1: but then also rivals like Jet to Whizz and Ryanair. 36 00:02:06,360 --> 00:02:10,679 Speaker 1: But JP Morgan was particularly down on easy Jet. It 37 00:02:10,760 --> 00:02:13,320 Speaker 1: said that it also already saw some signs of moderation 38 00:02:13,600 --> 00:02:16,800 Speaker 1: in pricing growth over the summer, and that any softer 39 00:02:16,919 --> 00:02:20,799 Speaker 1: pricing in the winter would be worsened by some inflation 40 00:02:20,960 --> 00:02:24,639 Speaker 1: as well. Easy Jet has already been underperforming its peers, 41 00:02:25,160 --> 00:02:28,280 Speaker 1: and of course that new rating really won't help. And 42 00:02:28,400 --> 00:02:33,000 Speaker 1: Trust Pilot Chloe launching a share buy back program. 43 00:02:33,480 --> 00:02:34,639 Speaker 2: Is that putting off for the stop? 44 00:02:34,680 --> 00:02:36,799 Speaker 1: What's what's the rational for that buyback? Yeah, So a 45 00:02:36,800 --> 00:02:39,160 Speaker 1: great day for trust Pilot this morning. Actually, the earnings 46 00:02:39,200 --> 00:02:42,000 Speaker 1: were good, the new share buyback, as you mentioned, and 47 00:02:42,040 --> 00:02:45,160 Speaker 1: then it also raised its adjusted EBIT dumb margin target. 48 00:02:46,000 --> 00:02:47,880 Speaker 1: A lot of that is actually to do with AI 49 00:02:47,919 --> 00:02:50,280 Speaker 1: and that's really becoming a key part of its strategy. 50 00:02:50,800 --> 00:02:54,320 Speaker 1: It said that the expanded use of AI internally helped 51 00:02:54,680 --> 00:02:59,400 Speaker 1: drive some efficiencies which contributed to the improvement in margin 52 00:02:59,680 --> 00:03:02,200 Speaker 1: and to that strong free cash flow, which explains that 53 00:03:02,240 --> 00:03:05,920 Speaker 1: buyback and that margin guidance raise. It also noted that 54 00:03:05,919 --> 00:03:11,079 Speaker 1: it's really benefiting from Gemini and chat GPT overviews, including 55 00:03:11,120 --> 00:03:14,880 Speaker 1: Trust Pilot reviews, and increasing that exposure to the company. 56 00:03:15,800 --> 00:03:18,480 Speaker 1: So it's also and it's also focusing on big customer 57 00:03:18,520 --> 00:03:22,640 Speaker 1: wins on Barclay's Boots Lynch over the last six months. 58 00:03:23,200 --> 00:03:25,160 Speaker 1: So overall, it seems that both the company and the 59 00:03:25,160 --> 00:03:28,680 Speaker 1: investors are quite bullish for that Trust Pilot story. 60 00:03:29,520 --> 00:03:33,560 Speaker 2: The stock Movers report from Bloomberg Radio Check back with 61 00:03:33,639 --> 00:03:36,240 Speaker 2: us throughout the day for the latest roundup of companies 62 00:03:36,280 --> 00:03:39,400 Speaker 2: making news on Wall Street, and for the latest market 63 00:03:39,400 --> 00:03:43,880 Speaker 2: moving headlines. 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