1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:18,040 --> 00:00:19,840 Speaker 3: Now, let's look at some of these stocks on the 5 00:00:19,880 --> 00:00:22,360 Speaker 3: move today in Europe. We're joined by Blombg's Equity's report 6 00:00:22,360 --> 00:00:25,799 Speaker 3: to Joe Eastern SAP Shares, the software company based in 7 00:00:25,960 --> 00:00:30,400 Speaker 3: Bonden Wurtenberg in Germany, swing this morning because of better 8 00:00:30,440 --> 00:00:33,400 Speaker 3: than expected results. Why why did they do so well? 9 00:00:33,760 --> 00:00:37,000 Speaker 1: Yeah, so SAP reporting a massive jump in their orders, 10 00:00:37,040 --> 00:00:39,599 Speaker 1: their orders in terms of the backclog growing close to 11 00:00:39,680 --> 00:00:42,200 Speaker 1: thirty percent in the latest course and now and list 12 00:00:42,600 --> 00:00:45,000 Speaker 1: over at Deutsche Bank writing that this is a master 13 00:00:45,120 --> 00:00:50,280 Speaker 1: class in resilience given the macro uncertainty, that stock having 14 00:00:50,320 --> 00:00:53,280 Speaker 1: its best day in around six years and actually now 15 00:00:53,600 --> 00:00:57,400 Speaker 1: cementing its place as Europe's largest company by market caps. 16 00:00:57,400 --> 00:01:00,360 Speaker 1: So the cloud business seems to be the main either 17 00:01:00,600 --> 00:01:03,520 Speaker 1: of the order jump, so that is a step up. 18 00:01:03,560 --> 00:01:05,920 Speaker 1: Their margins looking really strong as well, again getting close 19 00:01:05,959 --> 00:01:09,720 Speaker 1: to thirty percent terms of their margins expanding, So showing resilience, 20 00:01:09,760 --> 00:01:12,679 Speaker 1: as Deutschebank points out, in a difficult environment. But no 21 00:01:12,800 --> 00:01:16,920 Speaker 1: such luck for Recit a very different picture there, Joe No, 22 00:01:17,200 --> 00:01:19,520 Speaker 1: so Reckit. Well. Reckitt did say that we are all 23 00:01:19,600 --> 00:01:21,960 Speaker 1: buying lots of debtal and cleaning our house, so that 24 00:01:22,000 --> 00:01:24,240 Speaker 1: was a really strong part of the market. However, that 25 00:01:24,360 --> 00:01:26,600 Speaker 1: hasn't been enough to make up for a drop down 26 00:01:26,880 --> 00:01:28,760 Speaker 1: in the rest of the core business. So this is 27 00:01:28,840 --> 00:01:34,280 Speaker 1: brands including strepsls Lozengers, Musenix, flu remedies, and also all 28 00:01:34,319 --> 00:01:37,960 Speaker 1: their other home products. Actually we can then expected. The 29 00:01:38,000 --> 00:01:40,840 Speaker 1: consumer goods company reported life forlike revenue up one point 30 00:01:40,920 --> 00:01:43,679 Speaker 1: one percent in the first quarter, but that was significantly 31 00:01:43,760 --> 00:01:46,839 Speaker 1: below some of the analyst estimates. Some analysts were looking 32 00:01:46,840 --> 00:01:49,400 Speaker 1: for close or above two percent in terms of the 33 00:01:49,440 --> 00:01:52,360 Speaker 1: quarterly self so it stock down at close to five 34 00:01:52,520 --> 00:01:55,600 Speaker 1: percent today, which is a big drop for a company 35 00:01:55,680 --> 00:01:57,920 Speaker 1: that size. They are trying to offload a lot of 36 00:01:57,920 --> 00:01:59,680 Speaker 1: their businesses at the moment in terms of some of 37 00:01:59,720 --> 00:02:02,400 Speaker 1: their encore units. Didn't really get much of an update 38 00:02:02,440 --> 00:02:04,920 Speaker 1: on that's potentially that is weighing as well. But wreck 39 00:02:04,960 --> 00:02:08,680 Speaker 1: It is a significant underformer despite all that house cleaning 40 00:02:08,680 --> 00:02:09,320 Speaker 1: we're all doing. 41 00:02:09,560 --> 00:02:12,040 Speaker 3: Yeah, well it's spring, don't you get that through the 42 00:02:12,120 --> 00:02:15,520 Speaker 3: spring season? Yeah, well, the sunshine suddenly streams in and 43 00:02:15,560 --> 00:02:17,880 Speaker 3: I see all the corners and the bits that I've missed. 44 00:02:17,560 --> 00:02:22,000 Speaker 1: At Hibernate anymore. Ye get visitors around, need to clean up. 45 00:02:22,520 --> 00:02:23,160 Speaker 1: That's the trend. 46 00:02:23,680 --> 00:02:26,880 Speaker 3: And maybe a new outfit into text positively is for 47 00:02:26,960 --> 00:02:28,280 Speaker 3: them coming back into fashion. 48 00:02:28,320 --> 00:02:31,919 Speaker 1: Maybe yes, the indo text back in fashion now. This 49 00:02:32,080 --> 00:02:35,760 Speaker 1: is a note from an analysts over at BNP Parabar Exain. 50 00:02:36,080 --> 00:02:38,480 Speaker 1: Now they are saying that indo text so it is 51 00:02:38,520 --> 00:02:41,360 Speaker 1: the owner of Zara, of course, is a way to 52 00:02:41,440 --> 00:02:45,000 Speaker 1: shield yourself from the downturn linked to tariff. So the 53 00:02:45,040 --> 00:02:49,960 Speaker 1: analyst over there, Warwick, says that Zara's agile supply chain, 54 00:02:50,120 --> 00:02:53,960 Speaker 1: robust balance sheet and high margin structure means that it 55 00:02:54,080 --> 00:02:58,120 Speaker 1: is a safe stock in an uncertain gy political climate. 56 00:02:58,200 --> 00:03:01,120 Speaker 1: They note that the stock has only performed in line 57 00:03:01,120 --> 00:03:03,040 Speaker 1: with H and M, but they actually think you should 58 00:03:03,040 --> 00:03:06,680 Speaker 1: be selling H and M. So therefore they upgrade the 59 00:03:07,000 --> 00:03:10,280 Speaker 1: intertext Zara owner today with a price target of around 60 00:03:10,320 --> 00:03:13,280 Speaker 1: fifty six years is stock currently trading at forty eight's 61 00:03:13,360 --> 00:03:16,639 Speaker 1: a significant upside still to come around fifteen percent from 62 00:03:16,639 --> 00:03:18,760 Speaker 1: where we are now. One of the best performers in 63 00:03:18,800 --> 00:03:20,880 Speaker 1: Spain at the moment, up around one and a half percent. 64 00:03:22,360 --> 00:03:26,480 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 65 00:03:26,560 --> 00:03:29,320 Speaker 2: us throughout the day for the latest roundup of companies 66 00:03:29,360 --> 00:03:32,440 Speaker 2: making news on Wall Street and for the latest market 67 00:03:32,440 --> 00:03:36,840 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 68 00:03:36,880 --> 00:03:40,120 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 69 00:03:40,200 --> 00:03:41,680 Speaker 2: the Bloomberg Business app.