WEBVTT - SAP Soars, Reckitt Slumps, Inditex Outperform Rating 

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

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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

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<v Speaker 3>Now, let's look at some of these stocks on the

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<v Speaker 3>move today in Europe. We're joined by Blombg's Equity's report

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<v Speaker 3>to Joe Eastern SAP Shares, the software company based in

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<v Speaker 3>Bonden Wurtenberg in Germany, swing this morning because of better

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<v Speaker 3>than expected results. Why why did they do so well?

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<v Speaker 1>Yeah, so SAP reporting a massive jump in their orders,

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<v Speaker 1>their orders in terms of the backclog growing close to

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<v Speaker 1>thirty percent in the latest course and now and list

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<v Speaker 1>over at Deutsche Bank writing that this is a master

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<v Speaker 1>class in resilience given the macro uncertainty, that stock having

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<v Speaker 1>its best day in around six years and actually now

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<v Speaker 1>cementing its place as Europe's largest company by market caps.

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<v Speaker 1>So the cloud business seems to be the main either

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<v Speaker 1>of the order jump, so that is a step up.

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<v Speaker 1>Their margins looking really strong as well, again getting close

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<v Speaker 1>to thirty percent terms of their margins expanding, So showing resilience,

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<v Speaker 1>as Deutschebank points out, in a difficult environment. But no

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<v Speaker 1>such luck for Recit a very different picture there, Joe No,

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<v Speaker 1>so Reckit. Well. Reckitt did say that we are all

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<v Speaker 1>buying lots of debtal and cleaning our house, so that

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<v Speaker 1>was a really strong part of the market. However, that

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<v Speaker 1>hasn't been enough to make up for a drop down

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<v Speaker 1>in the rest of the core business. So this is

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<v Speaker 1>brands including strepsls Lozengers, Musenix, flu remedies, and also all

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<v Speaker 1>their other home products. Actually we can then expected. The

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<v Speaker 1>consumer goods company reported life forlike revenue up one point

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<v Speaker 1>one percent in the first quarter, but that was significantly

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<v Speaker 1>below some of the analyst estimates. Some analysts were looking

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<v Speaker 1>for close or above two percent in terms of the

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<v Speaker 1>quarterly self so it stock down at close to five

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<v Speaker 1>percent today, which is a big drop for a company

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<v Speaker 1>that size. They are trying to offload a lot of

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<v Speaker 1>their businesses at the moment in terms of some of

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<v Speaker 1>their encore units. Didn't really get much of an update

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<v Speaker 1>on that's potentially that is weighing as well. But wreck

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<v Speaker 1>It is a significant underformer despite all that house cleaning

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<v Speaker 1>we're all doing.

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<v Speaker 3>Yeah, well it's spring, don't you get that through the

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<v Speaker 3>spring season? Yeah, well, the sunshine suddenly streams in and

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<v Speaker 3>I see all the corners and the bits that I've missed.

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<v Speaker 1>At Hibernate anymore. Ye get visitors around, need to clean up.

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<v Speaker 1>That's the trend.

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<v Speaker 3>And maybe a new outfit into text positively is for

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<v Speaker 3>them coming back into fashion.

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<v Speaker 1>Maybe yes, the indo text back in fashion now. This

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<v Speaker 1>is a note from an analysts over at BNP Parabar Exain.

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<v Speaker 1>Now they are saying that indo text so it is

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<v Speaker 1>the owner of Zara, of course, is a way to

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<v Speaker 1>shield yourself from the downturn linked to tariff. So the

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<v Speaker 1>analyst over there, Warwick, says that Zara's agile supply chain,

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<v Speaker 1>robust balance sheet and high margin structure means that it

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<v Speaker 1>is a safe stock in an uncertain gy political climate.

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<v Speaker 1>They note that the stock has only performed in line

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<v Speaker 1>with H and M, but they actually think you should

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<v Speaker 1>be selling H and M. So therefore they upgrade the

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<v Speaker 1>intertext Zara owner today with a price target of around

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<v Speaker 1>fifty six years is stock currently trading at forty eight's

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<v Speaker 1>a significant upside still to come around fifteen percent from

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<v Speaker 1>where we are now. One of the best performers in

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<v Speaker 1>Spain at the moment, up around one and a half percent.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

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