The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1052 GMT - Centrica could have around 500 million pounds it could use to boost shareholder returns, Berenberg analysts write. The company's financial framework should enable it to return just over 1.4 billion pounds to shareholders by 2028, they write. Currently, the analysts expect a cumulative base dividend of just under 900 million pounds. The British energy and services company should return to earnings growth after being hit by falling gas prices, they say. Its improved performance comes as it increases its exposure to regulated or contracted cash flows, they add. The analysts increase the stock's target price to 230 pence, from 190 pence. They reiterate their buy rating. Shares rise 2.3% to 193.60 pence.(adam.whittaker@wsj.com)
1027 GMT - China's economy is still on track to hold up well this year despite disappointing April economic activity data, Capital Economics says in a note. Head of China economics Julian Evans-Pritchard says the slowdown in industrial output, the slowest pace since mid-2023, appears to reflect softer domestic demand, while spillover effects from the Iran war are weighing on refinery activity and petrochemical production. The weak retail sales growth suggests the fading impact of China's consumer goods trade-in program. Still, CE says the latest data is not yet a cause for concern, pointing to stronger external demand, a booming electronics sector, easing declines in property prices and improving consumer confidence. (jason.chau@wsj.com)
1026 GMT - The renewed slowdown in economic activity in April should be a concern for Beijing, Danske Bank chief analyst Allan von Mehren says in a note. He says the April data threw cold water on the recent improvement in domestic demand, highlighting exports as China's only growth engine for now. However, he warns that export momentum may start sputtering soon as global growth slows due to the Iran war. Von Mehren also attributes the weaker-than-expected retail sales data to uncertainty stemming from the Middle East conflict, and calls for policymakers to step up economic stimulus. (jason.chau@wsj.com)
1019 GMT - Palm oil futures closed higher, with the Bursa Malaysia Derivatives contract for August delivery ending 96 ringgit higher at 4,533 ringgit a metric ton. Prices likely tracked overnight gains in rival vegetable oils, say Kenanga Futures analysts in a note. Continued delays to the Strait of Hormuz's reopening due to the Middle East conflict could also support prices, say Kenanga Futures analysts in a note. They peg the support and resistance levels for the August futures contract at 4,400 ringgit and 4,520 ringgit, respectively. (megan.cheah@wsj.com)
0939 GMT - The tightening supply pipeline of China's property sector should help extend the recovery, HSBC Global Research analysts write in a note. Shenzhen's fast-declining inventories are already improving sell-through for premium projects, they add. Sold area has consistently exceeded new starts, rapidly drawing down stock that is under construction but not yet approved for sales, they say. Remaining inventory is increasingly skewed towards completed units and projects yet to commence construction, they add. HSBC Global Research still expects this year to be an inflection point, with prices stabilization and better sales in key cities, they say.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0920 GMT - Publicis Groupe's $2.55 billion deal for U.S. data specialist LiveRamp looks like an attempt to replicate the impact the 2019 acquisition of Epsilon had on the French advertising group, UBS's Jo Barnet-Lamb and Ashna Gautam say in a research note. Epsilon has become a core differentiator for Publicis in data and identity, the analysts say. "LiveRamp fits within this approach, extending the group's position in data and enabling a broader AI/data collaboration offering, which is aligned with evolving client demand," they add. "The debate is likely to centre on whether LiveRamp can replicate the success of Epsilon in driving a more differentiated, higher-growth profile over time." Shares in Publicis rise 2.1%, while LiveRamp is up 27% in U.S. premarket trading. (adria.calatayud@wsj.com)
0916 GMT - Thai Beverage has strong potential to deliver 8%-10% earnings growth over FY 2026-27, its bull at CGS International says. The beer maker's resilient margin anchors earnings growth despite quarterly volatility in volumes, analysts Meghana Kande and Lim Siew Khee say in a note. Effective procurement will likely be crucial to the company sustaining its growth momentum beyond FY 2026, they say. The Singapore-listed stock lags peers in the consumer segment, they say, noting it trades around 9X forward price-to-earnings ratio and offers a 6% yield. CGS International retains its add rating and S$0.58 target price. Shares rise 3.5% to S$0.445. (megan.cheah@wsj.com)
0858 GMT - Publicis Groupe's $2.55 billion deal to acquire U.S. data specialist LiveRamp might raise some questions among investors given that it reduces the likelihood of a share buyback, UBS's Jo Barnet-Lamb and Ashna Gautam say in a research note. The acquisition seems in line with the French advertising group's strategy, but some might question its capital-allocation priorities, the analysts say. Given Publicis' current valuation, investors have increasingly favored buybacks over acquisitions, according to UBS. That said, the deal offers a clear strategic rationale and Publicis has room to reduce its debt ratios quickly, the analysts say. Shares in Publicis rise 2.3%, while LiveRamp jumps 27% in U.S. premarket trading. (adria.calatayud@wsj.com)
0856 GMT - Singapore Airlines is likely to post a decline in earnings this year from fuel-cost pressures, CGS International analyst Raymond Yap writes in a note. SIA said that while ticket prices were raised, that doesn't fully offset the surge in jet fuel; as such, the biggest downside risk for SIA arises from a potential shortfall in fuel-cost pass through, Yap says. Still, SIA enjoyed a strong rise in passenger yields on the back of strong demand and high load factors in the six-month period ended March, but earnings were dragged by wider Air India losses, Yap adds. CGSI retains a hold rating on the stock, trimming its target price to S$6.44 from S$6.80. Shares are 0.3% lower at S$6.41. (kimberley.kao@wsj.com)
0855 GMT - Publicis Groupe's deal to buy U.S. data specialist LiveRamp adds new capabilities to support the French advertising company's AI offering, Citi analysts say in a research note. By combining LiveRamp's data connectivity platform with Publicis' existing data assets and technology, the company aims to power more intelligent AI agents--systems capable of conducting tasks on behalf of humans--through privacy-safe data assets, the analysts say. This should help Publicis tap into a larger addressable market, the so-called agentic business transformation, they add. Publicis lifts its targets for 2027 and 2028 after the deal. Citi increases its target price to 90 euros from 88 euros. Publicis shares rise 2.4% to 78.94 euros, while LiveRamp jumps 27% in U.S. premarket trading. (adria.calatayud@wsj.com)
0854 GMT - Alibaba Group's FY 2027-28 adjusted earnings per share could be weighed by higher capital expenditure, say China Galaxy International analysts in a note. The Chinese technology company expects FY 2026-28 capex to exceed its previous guidance, given strong demand related to AI-related cloud services, the analysts note. They therefore trim their adjusted EPS forecasts for FY 2027-28 by 13%-14% and lowers its target price to HK$172 from HK$175 while retaining its add rating. The analysts cite potential revenue gains from its e-commerce growth as well as AI and cloud business expansion. Shares closed 0.45% lower at HK$131.70.(megan.cheah@wsj.com)
0846 GMT - Intact Financial is a logical potential bidder to buy London-listed insurer Hiscox given its merger and acquisition ambitions, Jefferies analysts write. On Friday, trade publication Insurance Post reported that Intact was exploring a potential bid for the FTSE 100-listed company. The report sent Hiscox's shares up 15% to an all-time high of 18.90 pounds, before they slipped back to close at 18.41 pounds. While neither company has responded to the report, Friday's share price rise indicates that the market is treating the speculation as credible, Jefferies says. Hiscox shares are up 0.3% at 18.46 pounds. (ian.walker@wsj.com)
(END) Dow Jones Newswires
May 18, 2026 06:52 ET (10:52 GMT)
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