Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg Data.
Speaker 2: Now, let's have a look at some of the stocks
Speaker 2: on the move today here in Europe. I'm Caroline Hepget
Speaker 2: alongside Stephen Cowell, and we're joined by our reporter Tiva
Speaker 2: adebayer Tea. Good morning. Let's start with EasyJet. Safe to
Speaker 2: say that there's been some turbulence for them today.
Speaker 3: Well, it seems they're on the ascent this morning. Carolina
Speaker 3: shares are up as much as five point four percent.
Speaker 3: That is the highest level in almost a year, and
Speaker 3: it comes after they've rejected a third takeover proposal from
Speaker 3: US investment firm Castle Lake. Now, avid listeners will probably
Speaker 3: know a bit about this saga. Castlelake have been pursuing
Speaker 3: EasyJet for a while now, but they will have to
Speaker 3: take this latest proposal directly to shareholders.
Speaker 4: They'refering about four point seventy four an.
Speaker 3: Easy Jet has said they're rejecting the proposal because it's
Speaker 3: not in the best interest of their showerholders. They're accusing
Speaker 3: Castle Lake of trying to buy the company on the cheap. Conversely,
Speaker 3: Castle Lake says that easy Jets board has shown unwillingness
Speaker 3: to engage meanfully and that is prompting their laters move
Speaker 3: to go directly to the shareholders. Castle Lake is also
Speaker 3: saying that it will offer a partial equity alternative, so
Speaker 3: that will allow current shareholders in easy Jets to remain invested.
Speaker 4: So it's certainly.
Speaker 3: One to watch going forward to see exactly how Easy
Speaker 3: Jets shareholders respond to.
Speaker 4: Now this third proposal from Castle Lake. Okay, so that's
Speaker 4: on easy Jet. Let's go from airplanes to supermarkets next.
Speaker 4: Under a frush rating for Car four.
Speaker 3: Yes, there's a bit of a vote of confidence for
Speaker 3: Car four this morning. That's Morgan Stanley. They're saying that
Speaker 3: Car four's operating strategic plan is being undervalued. Now their
Speaker 3: share price is up as much as two point nine
Speaker 3: percent this morning, and Morgan Stanley has resumed coverage with
Speaker 3: an overweight rating and a street high price target of
Speaker 3: over twenty euros. That price target is about a twenty
Speaker 3: nine percent increase.
Speaker 4: From Friday's close, so quite a big deal here.
Speaker 3: And across the A and R function on the terminal,
Speaker 3: the stock now has six buys eight holds and three
Speaker 3: cells amongst analysts tracked by Bloomberg, one analyst saying that
Speaker 3: many of the firm's issues are being addressed, is showing
Speaker 3: decisiveness in management, so positivity all round. Wait to see
Speaker 3: if that rally four car four is sustained in the
Speaker 3: coming days and weeks.
Speaker 2: Okay, but lastly, Babcock reported earnings this morning, I mean,
Speaker 2: one of the few really in Europe. How investors taking
Speaker 2: the update?
Speaker 3: Well, a bit of a miss for Babcock this morning.
Speaker 3: They've reported adjusted pre tax profit for the four year
Speaker 3: that missed the average analyst estimates, but they have also
Speaker 3: announced a further two hundred million pound buy back, and
Speaker 3: they say in their commentary they're expecting another year of
Speaker 3: good progress supported by strong revenue. They've also reaffirmed their
Speaker 3: medium term guidance of average mid single digit organic revenue growth,
Speaker 3: so they're seeing the positives investors on. It's one of
Speaker 3: the biggest newsers on the stock six hundred this morning,
Speaker 3: but we'll wait to see if perhaps some of their
Speaker 3: predictions come to fruition.
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