SAP Dethrones Novo, RWE Gains on Elliott Interest, Thales Rises

On this episode of Stock Movers:

- SAP claimed the title of Europe’s most valuable public company, replacing Danish weight-loss drug maker Novo Nordisk. Shares of SAP, which have been powered by growing investor optimism over its cloud-based software, rose 1,6% on Monday, valuing the German company at about €314 billion ($340 billion).

- Elliott Investment Management called on RWE to ramp up buybacks after amassing a stake of close to 5% in the German utility. “We share the market’s disappointment with the lack of clarity regarding the company’s commitment to enhance shareholder returns,” Elliott said in a statement. RWE has been under pressure from investors due to its falling share price and its focus on a huge investment program.

- UBS cut the recommendation on Leonardo to neutral, preferring other stocks in the space for exposure to the defence supercycle theme. Peers Saab and Thales are raised to buy. UBS says Leonardo management’s actions, including the dividend increase and efforts to lower exposure to the Boeing 787, have improved business returns, but these efforts are now reflected in the share price. UBS says Thales’s guidance for 6%-7% organic sales growth per year in the long term is likely to prove conservative.

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