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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 1: Okay, let's take a look at some stocks on the
Speaker 1: move today in your Ontommakin's in London with Stephen count
Speaker 1: in Brussels, were joined by Bloomberg reporter Chloe Melly. Chloe,
Speaker 1: let's start with Loreal A downgrade this morning. What's the
Speaker 1: impact being. Yeah, so it got downgraded at Jeffries to
Speaker 1: an underperformed rating this morning. There were actually two names
Speaker 1: in that kind of beauty cosmetics space getting downgraded. Biersdorf
Speaker 1: was also downgraded to hold rating by Jeffries. So what
Speaker 1: Aeles said was that growth was really normalizing in that
Speaker 1: global cosmetic market after a period of quite strong growth.
Speaker 1: And interestingly, they also said that catchcres like injectables like
Speaker 1: supplements and weight loss drugs could potentially be somewhat kindabilistic
Speaker 1: to some key names in the sector. The latest earnings
Speaker 1: for Lorio were actually quite good. We saw cells expanding
Speaker 1: more than expected in North America, a return to growth
Speaker 1: in China, so it was quite positive over the summer.
Speaker 1: But Jeffrey said that valuation for Lorial gave the company
Speaker 1: too much credit at the moment and that market share
Speaker 1: games were moderating. So it was down this morning on
Speaker 1: the back of that downgrade.
Speaker 2: Well, me while Chloe, we were looking at easy Jet
Speaker 2: as well. What's the latest that we've heard from them?
Speaker 1: Yeah, So JP Morgan cut the rating on easy Jet
Speaker 1: as well this morning, cut it to a neutral rating
Speaker 1: and it placed it on negative catalyst watch, and Liz
Speaker 1: said that they were overall very cautious about the European
Speaker 1: shorthol sector. So it said that more capacity growth for
Speaker 1: destinations in the Mediterranean and for winter sun destination as well,
Speaker 1: it meant that supply is now significantly ahead of pre
Speaker 1: pandemic levels and therefore could outstrip demand. So that is
Speaker 1: really hurting potentially could hurt pricing for companies like easy Jet,
Speaker 1: but then also rivals like Jet to Whizz and Ryanair.
Speaker 1: But JP Morgan was particularly down on easy Jet. It
Speaker 1: said that it also already saw some signs of moderation
Speaker 1: in pricing growth over the summer, and that any softer
Speaker 1: pricing in the winter would be worsened by some inflation
Speaker 1: as well. Easy Jet has already been underperforming its peers,
Speaker 1: and of course that new rating really won't help. And
Speaker 1: Trust Pilot Chloe launching a share buy back program.
Speaker 2: Is that putting off for the stop?
Speaker 1: What's what's the rational for that buyback? Yeah, So a
Speaker 1: great day for trust Pilot this morning. Actually, the earnings
Speaker 1: were good, the new share buyback, as you mentioned, and
Speaker 1: then it also raised its adjusted EBIT dumb margin target.
Speaker 1: A lot of that is actually to do with AI
Speaker 1: and that's really becoming a key part of its strategy.
Speaker 1: It said that the expanded use of AI internally helped
Speaker 1: drive some efficiencies which contributed to the improvement in margin
Speaker 1: and to that strong free cash flow, which explains that
Speaker 1: buyback and that margin guidance raise. It also noted that
Speaker 1: it's really benefiting from Gemini and chat GPT overviews, including
Speaker 1: Trust Pilot reviews, and increasing that exposure to the company.
Speaker 1: So it's also and it's also focusing on big customer
Speaker 1: wins on Barclay's Boots Lynch over the last six months.
Speaker 1: So overall, it seems that both the company and the
Speaker 1: investors are quite bullish for that Trust Pilot story.
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