Tech, Media & Telecom Roundup: Market Talk

The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0848 GMT - STV Group has continued to deliver despite external pressures, showing the company's hidden strength, Shore Capital analyst Roddy Davidson writes in a note. The Scottish broadcaster's ability to secure new commissions across multiple genres and a variety of broadcasters is particularly impressive, Davidson says. The growing content production led to sustained revenue, with positive implications for top-line visibility and margin expansion. Additionally, growth prospects in digital broadcasting look positive as the STV Player grows viewing and traction with advertisers, he adds. The U.K. investment group expects a strong three-year adjusted earnings per share growth along with a dividend per share progression and robust cash generation. Shares are up 2.8% at 199.50 pence. (najat.kantouar@wsj.com)

0321 GMT - Baidu's advertising revenue faces challenges in the near term, Deutsche Bank research analyst Leo Chiang says in commentary. Macro uncertainties and the continued transition in traffic from traditional search to generative AI search will likely continue to weigh on the advertising segment in 4Q, the analyst say. Chiang cuts his revenue forecasts on Baidu for 2024 and 2025 by 1% and 4%, respectively, Deutsche Bank keeps a hold rating on the stock and cuts its target price to HK$93.00 from HK$106.00. Shares are 5.2% higher at HK$81.90. (tracy.qu@wsj.com)

0118 GMT - WiseTech Global's management depth looks likely to be the key area of focus at next month's investor day, according to Citi analyst Siraj Ahmed. He points out that the logistics software provider blamed founder Richard White's distraction for the product delay that forced it to downgrade guidance. As a result, Ahmed reckons that investors will be looking for details on the new products as well as the depth of talent in senior management. Citi has a last-published buy rating and A$124.50 target price on the stock, which is up 0.2% at A$122.96. (stuart.condie@wsj.com)

2353 GMT - WiseTech Global's guidance downgrade is just short-term noise to the logistics-software provider's new bulls at Macquarie. Raising their recommendation on the stock to outperform from neutral, the investment bank's analysts view share-price weakness on the downgrade as an opportunity to enter a long-term growth story. They tell clients in a note that WiseTech's Container Transport Optimisation product, the delay in which prompted the downgrade, expands the company's total addressable market to A$101.7 billion. There are no rivals in the space, they add. Macquarie raises its target price by 53% to A$152.70. Shares are up 2.2% at A$125.36. (stuart.condie@wsj.com)

2259 GMT - WiseTech Global's bulls at Morgan Stanley urge investors to look past the logistics-software provider's downgraded short-term guidance and focus on its longer-term growth drivers. MS analysts tell clients in a note that they see WiseTech's software driving both higher profits and faster growth for its customers, feeding further take-up. They also think that reinvestment in new products and improvement to existing offerings is entrenching a competitive advantage over rivals. With new products helping increase WiseTech's total addressable market, MS lifts its target price by 33%, to A$160.00, and stays overweight on the stock. Shares are at A$122.71 ahead of the open. (stuart.condie@wsj.com)

1322 GMT - "Wicked" performed well on its opening weekend and should likely show very strong legs through the long Thanksgiving holiday weekend and into Christmas, says Benchmark's Matthew Harrigan in a research note. The analyst says the movie, a product of Universal Pictures and its parent company Comcast, generated the fourth highest opening for a musical ever and the largest ever based on a Broadway show. "Wicked" brought in $114M domestically and $164M globally. Harrigan notes that it's difficult for a single movie to affect Comcast's stock although "Wicked" is unusual in that a second installment is on the way and the result exemplified NBCUniversal and Comcast's overall marketing capability. "Given holding patterns for blockbuster holiday movie releases, a $1 billion ultimate global gross appears very tenable with significant profitability," says Harrigan. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

November 26, 2024 04:20 ET (09:20 GMT)

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