The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0848 GMT - Halma's acquisition of Lamidey Noury Medical is a good strategic move, Shore Capital analysts say. The acquisition of the French technology company is complementary to those of IZI Medical Products and Rovers Medical Devices, Akhil Patel and Tom Fraine write in a note. Halma, a London-listed group of health technology companies, could also grow the business. The analysts note that only 8% of Lamidey's sales are in the U.S. Halma's shares are up 0.6% at 25.19 pounds. (cristina.gallardo@wsj.com)
0846 GMT - Political headwinds in the U.S. may leave room for China in the ESG-disclosure space, Ronald Wu at UBS Investment Bank says. With the so-called red sweep of Donald Trump winning the White House and Republicans controlling both houses of Congress, Wu says it is even less likely that the U.S. will introduce any ESG reporting requirement for companies. Any disclosure of Scope 1-3 emissions--which cover companies' direct and indirect greenhouse-gas emissions--will be voluntary outside California. "The U.S. stepping back in this area, we believe, provides an opportunity for others to take leadership in international rulemaking," says Wu, head of Greater China ESG and sustainability research. China already has a plan for an internationally aligned reporting system and has improved disclosures. (fabiana.negrinochoa@wsj.com)
0844 GMT - Enel's 2025-27 strategic plan offers no fireworks and its new financial targets largely meet expectations, Citi analyst Jenny Ping writes. The Rome-based energy company is targeting ordinary earnings before interest, taxes, depreciation and amortization between 24.1 billion euros and 24.5 billion euros. Net ordinary income is expected to increase to between 7.1 billion euros and 7.5 billion euros, while the minimum dividend payment per share will rise to 0.46 euros with upside potential. The stock is unlikely to shine given the lack of positive surprises and because the new targets all fall within 1%-2% of consensus expectations, Ping adds. Shares trade down 0.7% at 6.74 euros. (adam.whittaker@wsj.com)
0828 GMT - Lenovo's infrastructure-services segment could continue narrowing operating losses and achieve a turnaround in early fiscal 2026, CCB International analyst Clint Su says in a research note. The segment could gradually narrow its operating loss in the quarters ahead, supported by high-margin products such as storage, high-performance computing and the Neptune liquid-cooling technology. Meanwhile, the PC maker is expected to continue leveraging its AI PC advantage with several new products due to be released in 2H this year, including those equipped with Intel's Lunar Lake chips, he says. The AI PCs could further boost Lenovo's margins and average selling price, he adds. CCB International maintains an outperform rating on the stock, with the target price unchanged at HK$12.50. Shares ended at HK$8.98. (sherry.qin@wsj.com)
0820 GMT - Melrose Industries reaffirmed its fiscal-year outlook on a solid profit performance, RBC Capital Markets analysts say in a research note. The London-listed aerospace company targets fiscal 2024 adjusted operating profit in a range of 550 million to 570 million pounds and fiscal 2025 at 700 million pounds. Consensus sees results of 565 million pounds and 701 million pounds, respectively, RBC says. There is no specific revenue comment but given the wider market headwinds, the analysts expect it could be slightly lower than previously expected, they say. "While there have been some aerospace sector-wide headwinds, we see the substantial discount versus peers as unjustified for what we see as a high-quality asset," the analysts say, reiterating their outperform recommendation. Shares trade up 6.7% at 522.4 pence. (nina.kienle@wsj.com)
0817 GMT - Hong Kong's Hang Seng Index closed 0.8% higher at 19756.61. Among gainers, Geely Automobile rose 4.4%, Bank of China climbed 4.2% and JD.com added 3.6%. Meanwhile, Haier Smart Home fell 3.0% and Lenovo Group lost 2.1%. Alibaba Group dropped 1.0%. Investors are awaiting more earnings this week from Chinese companies, including Xiaomi, XPeng and NIO. Sentiment could also be lifted by recent data for China's October economic activity, which pointed to signs of improvement after growth-friendly policies from Beijing kicked in. (amanda.lee@wsj.com)
0813 GMT - Enel's 2025-27 strategic plan is more credible than its 2024-26 plan, RBC Capital Markets analysts write. Enel continues to put emphasis on networks, and plans to speed up investment in electrical grids across all of its locations, they write. For 2027, the company is targeting a net income of 7.1 billion euros to 7.5 billion euros, which is not far from its guidance for 2026, they write. However, it looks like a more credible target for 2027, and is ahead of consensus, the analyst add. Shares are down 0.7% at 6.74 euros. (adam.whittaker@wsj.com)
0808 GMT - Thales' investors weren't impressed by the conservative nature of the French aerospace and defense's medium-term ambitions, particularly regarding its defense business, Baader Europe analyst Saima Hussain says. Between 2024 and 2028 Thales expects organic sales growth of between 5% and 7% on average. Hussain notes that the group is operating in a favorable context and remains an attractive and diversified company, with a resilient business model. Shares are up 0.26% at 151.7 euros. (cristina.gallardo@wsj.com)
0802 GMT - First Resources' earnings should be better in 4Q than in 3Q on higher palm oil prices, Maybank Research's Ong Chee Ting says in a research report. Higher crude palm oil prices and stronger earnings for the palm oil producer's downstream division should outweigh lower output, the analyst says. Its downstream division's refining margin is looking even more positive in 4Q than in 3Q thanks to rising prices. The brokerage lifts its EPS forecasts for the Singapore-listed company by 25% for 2024, 24% for 2025 and 18% for 2026. It also raises the stock's target price to S$1.60 from S$1.46 while maintaining a hold rating. Shares are 1.3% higher at S$1.54. (ronnie.harui@wsj.com)
0742 GMT - The FTSE 100 is expected to open little changed, according to FactSet. The index closed down seven points or 0.1%, to 8063 points on Friday. "At the start of a new week, stock futures are mostly unchanged, which may suggest that the stock market is sleeping off its Trump hangover for now," XTB's Kathleen Brooks says in a note. If there are any signs that the U.S. president-elect's proposed trade tariffs could be watered down, stocks might rise, she says. In economic data, this week's key releases include U.K. inflation data on Wednesday and purchasing managers' surveys for the U.K., eurozone and U.S. on Friday. (renae.dyer@wsj.com)
0740 GMT - Metropolitan Bank & Trust stands to benefit from quicker loan growth and lower provisioning, SB Equities' Katrine Eunice Dolatre says in a research report. The brokerage raises its 2024 and 2025 gross loan growth forecasts for the Philippine bank by 15.6% and 10.3%, respectively, citing expectations of a stronger pickup across the bank's loan market segments. Also, the bank's nonperforming-loan ratio fell 10 bps on year to 1.59% in 3Q, the analyst notes. The brokerage lifts its 2025 and 2026 earnings forecasts for the lender by 14% and 23%, respectively, due partly to reduced impairment-provision assumptions. It raises the stock's target price to PHP102.80 from PHP92.70, with an unchanged add rating. Shares are 2.3% higher at PHP74.45. (ronnie.harui@wsj.com)
0734 GMT - Malaysia's banking sector could have limited scope for return-on-equity expansion in 2025, as net interest margins are expected to be pressured by a likely 25bp cut in interest rates to 2.75% by 2H next year, AmInvestment Bank analyst Kelvin Ong says. Loan growth is projected to slow to 4%-5% next year from 5%-6% expected this year, weighed by potentially lower exports due to higher tariffs and pressure on consumers following likely targeted subsidies for RON 95 fuel next year, he says in a note. Asset quality and credit costs are expected to be steady, Ong adds. AmInvestment Bank maintains a neutral rating on Malaysia banks, with CIMB Group as its top sector pick. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
November 18, 2024 03:48 ET (08:48 GMT)
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