WEBVTT - Trustpilot Outperforms, EasyJet Cut, L'Oreal Downgrade 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg data.

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<v Speaker 1>Okay, let's take a look at some stocks on the

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<v Speaker 1>move today in your Ontommakin's in London with Stephen count

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<v Speaker 1>in Brussels, were joined by Bloomberg reporter Chloe Melly. Chloe,

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<v Speaker 1>let's start with Loreal A downgrade this morning. What's the

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<v Speaker 1>impact being. Yeah, so it got downgraded at Jeffries to

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<v Speaker 1>an underperformed rating this morning. There were actually two names

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<v Speaker 1>in that kind of beauty cosmetics space getting downgraded. Biersdorf

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<v Speaker 1>was also downgraded to hold rating by Jeffries. So what

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<v Speaker 1>Aeles said was that growth was really normalizing in that

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<v Speaker 1>global cosmetic market after a period of quite strong growth.

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<v Speaker 1>And interestingly, they also said that catchcres like injectables like

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<v Speaker 1>supplements and weight loss drugs could potentially be somewhat kindabilistic

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<v Speaker 1>to some key names in the sector. The latest earnings

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<v Speaker 1>for Lorio were actually quite good. We saw cells expanding

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<v Speaker 1>more than expected in North America, a return to growth

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<v Speaker 1>in China, so it was quite positive over the summer.

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<v Speaker 1>But Jeffrey said that valuation for Lorial gave the company

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<v Speaker 1>too much credit at the moment and that market share

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<v Speaker 1>games were moderating. So it was down this morning on

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<v Speaker 1>the back of that downgrade.

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<v Speaker 2>Well, me while Chloe, we were looking at easy Jet

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<v Speaker 2>as well. What's the latest that we've heard from them?

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<v Speaker 1>Yeah, So JP Morgan cut the rating on easy Jet

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<v Speaker 1>as well this morning, cut it to a neutral rating

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<v Speaker 1>and it placed it on negative catalyst watch, and Liz

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<v Speaker 1>said that they were overall very cautious about the European

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<v Speaker 1>shorthol sector. So it said that more capacity growth for

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<v Speaker 1>destinations in the Mediterranean and for winter sun destination as well,

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<v Speaker 1>it meant that supply is now significantly ahead of pre

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<v Speaker 1>pandemic levels and therefore could outstrip demand. So that is

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<v Speaker 1>really hurting potentially could hurt pricing for companies like easy Jet,

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<v Speaker 1>but then also rivals like Jet to Whizz and Ryanair.

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<v Speaker 1>But JP Morgan was particularly down on easy Jet. It

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<v Speaker 1>said that it also already saw some signs of moderation

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<v Speaker 1>in pricing growth over the summer, and that any softer

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<v Speaker 1>pricing in the winter would be worsened by some inflation

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<v Speaker 1>as well. Easy Jet has already been underperforming its peers,

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<v Speaker 1>and of course that new rating really won't help. And

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<v Speaker 1>Trust Pilot Chloe launching a share buy back program.

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<v Speaker 2>Is that putting off for the stop?

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<v Speaker 1>What's what's the rational for that buyback? Yeah, So a

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<v Speaker 1>great day for trust Pilot this morning. Actually, the earnings

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<v Speaker 1>were good, the new share buyback, as you mentioned, and

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<v Speaker 1>then it also raised its adjusted EBIT dumb margin target.

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<v Speaker 1>A lot of that is actually to do with AI

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<v Speaker 1>and that's really becoming a key part of its strategy.

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<v Speaker 1>It said that the expanded use of AI internally helped

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<v Speaker 1>drive some efficiencies which contributed to the improvement in margin

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<v Speaker 1>and to that strong free cash flow, which explains that

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<v Speaker 1>buyback and that margin guidance raise. It also noted that

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<v Speaker 1>it's really benefiting from Gemini and chat GPT overviews, including

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<v Speaker 1>Trust Pilot reviews, and increasing that exposure to the company.

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<v Speaker 1>So it's also and it's also focusing on big customer

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<v Speaker 1>wins on Barclay's Boots Lynch over the last six months.

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<v Speaker 1>So overall, it seems that both the company and the

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<v Speaker 1>investors are quite bullish for that Trust Pilot story.

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