The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1301 GMT - "If oil prices remain up at these levels, if the Strait of Hormuz is closed until September, October, there's going to be airline bankruptcies in Europe," Ryanair Chief Executive Michael O'Leary told CNBC. While the Irish budget carrier is well hedged and should remain in pretty good shape, competitors are in real trouble, O'Leary says. "If oil stays at $150 a barrel through to September, through to the end of this calendar year, we're all going into a recession." (nina.kienle@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)
0832 GMT - Singapore Airlines' 1Q bottom line is expected to come near breakeven as it remains well positioned to navigate uncertainties, UOB Kay Hian analyst Roy Chen says. SIA's strong fuel hedging position will help offset a sizeable portion of jet fuel cost pressures in the coming quarters, Chen says. He adds that associate Air India, which lacks fuel hedging, is likely to post wider losses, and will likely be a bigger drag for SIA in the current fiscal year. UOBKH raises its FY27 earnings forecast by 15% to S$964 million and retains a hold rating on the stock with a target price of S$6.64. Shares are 0.2% lower at S$6.41. (kimberley.kao@wsj.com)
0831 GMT - Ryanair Holdings' outlook is challenged due to rising costs, pricing pressure and customer hesitancy, Deutsche Bank analysts say in a research note. The Irish budget carrier doesn't provide profit guidance for fiscal 2027, it seems reasonable to infer pricing and cost pressures will prompt cuts to consensus expectations for profit before exceptional items, the analysts say. The consensus for the metric in fiscal 2027 currently stands at 2.3 billion euros, which compares with the 2.26 billion euros Ryanair delivered for fiscal 2026, they add. The company said visibility on bookings for the summer season is low, with first-quarter fares expected to decline and second-quarter pricing broadly flat. Unit costs in fiscal 2027 could rise by a mid-single-digit percentage, Deutsche Bank says. Shares fall 3.5%. (adria.calatayud@wsj.com)
0825 GMT - Ryanair Holdings seems to be positioning itself to make investments and capture market share, Bernstein's Alex Irving and Antoine Madre say in a research note. The Irish budget carrier said some of its competitors have recently withdrawn capacity due to fuel costs. Its expectations of competitor failures together with its unchanged forecast of traffic growth in fiscal 2027 point to a company positioning for countercyclical investment, the analysts say. "When sector-wide input cost increases hurt the industry, Ryanair's strong balance sheet and high margins leave it best positioned not just to weather the storm, but to capitalize." Shares fall 3.3%. (adria.calatayud@wsj.com)
0818 GMT - It is too early for Ryanair to provide profit guidance for fiscal 2027, but its outlook points to pressure in fares and higher costs, Bernstein's Alex Irving and Antoine Madre say in a research note. The Irish budget carrier's fourth-quarter net loss was deeper than expected, as average fares rose but ancillary revenue fell and unit costs were broadly flat, the analysts say. Looking ahead, the company is keeping its traffic guidance for fiscal 2027, saying demand remains robust but passenger hesitance is reducing visibility, Bernstein says. The timing of Easter and late bookings mean fares are expected to decline for the first quarter and trend flat for the second, while fuel, environmental and maintenance and crew costs are all set to rise this year, the analysts say. Shares fall 3.3%. (adria.calatayud@wsj.com)
0731 GMT - European and U.K. airline stocks slumped in early morning trading as oil prices were up and Ryanair warned of weaker-than-expected summer pricing trends. Ryanair also fell short of providing profit guidance for the year. Higher oil costs stemming from the war in Iran and uncertainty around fuel supply are weighing on airline stocks. The price of Brent crude is up 1.6% at $110.90. Ryanair's stock fell 2.7%, TUI fell 2.2%, and Air France-KLM dropped 2.3%. (aimee.look@wsj.com)
0653 GMT - Apollo Tyres faces risks to demand for tires as rising fuel prices impact operators' profitability, Nomura analysts say in a research report. The brokerage cuts its FY 2027 assumption for the tire manufacturer's sales-volume growth in India to 7% from 8%. Also, steep raw-material cost inflation will probably have an impact on the Indian company's near-term profitability, the analysts say. Moreover, Apollo Tyres' substantial capital expenditure of INR35 billion and INR30 billion planned for FY 2027 and FY 2028, respectively, could affect its free-cash-flow generation. Nomura lowers the stock's target price to INR452.00 from INR543.00, with an unchanged neutral rating. Shares are 4.3% lower at INR377.55. (ronnie.harui@wsj.com)
0603 GMT - Delivery Hero's Korean unit valuation appears high, Stifel's Clement Genelot writes in a note. According to Korean media reports, the German delivery company recently sent teaser letters for the sale of a controlling stake in its Korean unit--Woowa Brothers--to potential bidders including Naver, Uber, DoorDash and Alibaba and is seeking a valuation of 4.59 billion euros, he notes. "4.59 billion euros represents an optimistic opening bid rather than a realistic closing price." While Woowa was formerly one of the most profitable food-delivery assets globally, the switch from a monopoly to a duopoly with Coupang Eats has changed its long-term profile and its ability to be valued as a leader, he adds. Delivery Hero shares closed at 29.50 euros on Friday. ( najat.kantouar@wsj.com)
0448 GMT - ComfortDelGro faces earnings hit from some headwinds, UOB Kay Hian analysts say in a research report. These include higher fuel costs, contraction of its Singapore taxi fleet, and competitive pressures in Australia. Its taxi/point-to-point segment's 1Q core operating profit slumped 45% from a year earlier, the analysts note. The transportation services provider's A2B taxi network operator faced intensifying ride-hailing competition and cautious consumer spending in Australia. The brokerage cuts its 2026-2028 earnings forecasts for ComfortDelGro by 19%. It also downgrades the stock's rating to hold from buy and lowers the target price to S$1.54 from S$1.82. Shares are unchanged at S$1.28. (ronnie.harui@wsj.com)
0341 GMT - This year could be a transition period for China's auto industry with the market turning its focus on quality instead of quantity for growth, Nomura analysts write in a note. Sequential recovery in domestic demand in 2H driven by the rollout of new technology and models is likely, they say. The new phase of the national consumption subsidies and normalization of demand after a depressed 1H sales trend may support overall sales, they say. Chinese automakers with strong technology reserves and that are actively exploring global markets will likely outperform peers. BYD remains Nomura's top pick given its strong overseas expansion and model pipelines with ultra-fast charging capabilities, they say.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0207 GMT - Westports should be accumulated on weakness as risks from the Middle East conflict appear largely priced in, Maybank IB analyst Loh Yan Jin says in a note. She believes these risks are already largely reflected in current forecasts and valuations, while earnings upside could still emerge if container volume momentum remains resilient. The port operator expects positive volume growth in 2Q-3Q, driven partly by front-loading activities linked to the Middle East crisis and seasonal peak shipping season, although visibility for 4Q remains limited, she notes. Maybank maintains a buy rating on Westports and keeps its target price at 6.48 ringgit. Shares are 2.9% higher at 5.98 ringgit. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
May 18, 2026 12:20 ET (16:20 GMT)
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