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.
0734 GMT - Cummins India's steady demand outlook is likely tempered by margin challenges, Nomura analysts say in a research report. In its 4Q FY 2026 earnings call, management highlighted expectations of a stable demand environment in FY 2027, though margin headwinds are expected to persist, the analysts note. Management expects demand for the company's diesel and natural gas engines in India to stay steady, supported by a resilient macroeconomic environment and continued capex across key sectors. However, rising commodity prices and ongoing global geopolitical uncertainties are noted as challenges. Overall, management expects moderate growth across all segments in FY 2027. Nomura has a neutral rating and a target price of 6,000.00 rupees on the shares, which are 1.2% higher at 5,747.65 rupees. (ronnie.harui@wsj.com)
0729 GMT - Prosus' ability to deter Uber from buying German food delivery company Delivery Hero remains to be seen, Stifel's Clement Genelot writes in a note. The EU this week gave Amsterdam-listed technology investor Prosus more time to comply with a requirement to reduce its shareholding in Delivery Hero. Last year, Prosus agreed to sell most of its stake to get EU approval for its acquisition of Just Eat Takeaway. However, Prosus is considering using this waiver to temporarily increase its stake, either to block Uber's potential takeover or to give itself a better bargaining position, the Financial Times reported. While Prosus is financially strong, it is unclear whether it can build up a Delivery Hero stake of more than 25%, or build an anti-Uber coalition large enough to see off the U.S. ride-hailing company in time, Genelot says. Prosus and Delivery Hero shares are up 10.5% and 0.6%, respectively. (najat.kantouar@wsj.com)
0633 GMT - SATS's fundamentals remain strong despite some near-term cost pressure, UOB Kay Hian analysts say in a note. Industry data shows global air cargo resumed growth in April, after a temporary decline in March on the Iran war, they note. The Singapore company is likely to continue gaining market share in global cargo handling, supported by its diversified international network. "While elevated energy prices may increase operating costs in the near-term, cost pressures should be passed through to customers over time," the analysts say. UOB KH maintains a buy rating on the stock with a target price of 4.75 Singapore dollars. Shares are up 1.8% at S$3.92. (amanda.lee@wsj.com)
1154 GMT - Equinor's shares have two tailwinds that could push them nearly 25% higher, Baader's Frederic Lorec writes. The first is a structural one, he says. The Norwegian energy major has become a key gas supplier to Europe after the bloc weaned itself off Russian gas after the invasion of Ukraine. Gas prices have been elevated since Qatari gas facilities were damaged during the conflict in the Middle East and mean Norwegian gas margins should remain supported through at least 2028, Lorec adds. Secondly, low-cost oil production means the company is benefiting from the current higher oil prices, he adds. An Iran deal would hurt both tailwinds, but this isn't the base case given the state of negotiations, he adds. Shares rise 2.9% to 344.70 krone. (adam.whittaker@wsj.com)
0959 GMT - easyJet's biggest shareholders are unlikely to accept a takeover bid unless there is a knockout price, AJ Bell's Dan Coatsworth says in a market comment. "A bid is the last thing easyJet's management want to happen, given they've already got their hands full trying to navigate a weak market backdrop and concerns around post-summer fuel shortages," Coatsworth says. Airline investors know they must be patient, and won't want to cash out in a depressed market, he adds. With shares having jumped not more than 12% on the takeover news implies the market doesn't believe a bid will succeed, he adds. Shares trade 8.9% higher at 433.40 pence. (nina.kienle@wsj.com)
0943 GMT - Investment firm Castlelake could be attracted to easyJet because of the value of its aircraft fleet, Bank of America Global Research analysts say. The analysts estimate that the airline's owned aircraft are worth around 6.5 pounds per share, which is significantly higher than the current share price. The budget carrier's firm order backlog of 287 Airbus A320/A321 aircraft through fiscal 2034 could also represent further value upside, the analysts add. "If Castlelake were to acquire easyJet primarily for its fleet, the likely consequence would be further consolidation in the European short-haul market, including the U.K.," they say in a research note. The analysts expect a reduction in easyJet's independent capacity footprint to be positive for sector supply discipline and pricing. EasyJet shares trade 9.8% higher at 437.10 pence. (nina.kienle@wsj.com)
0926 GMT - Jet2 and Wizz Air shares rise after investment firm Castlelake said any takeover offer for easyJet would value the budget carrier at least at $4.12 billion. London-listed airlines Jet2 and Wizz Air trade 3.1% and 1.3% higher, respectively. easyJet shares trade 9.8% higher. Jet2 appears to be the most attractively valued company in RBC Capital Markets' airline and travel coverage when looking at measures such as earnings and asset-based valuation, analyst Ruairi Cullinane says in a research note. Because of this low valuation, the analyst wouldn't rule out the possibility that it could become a takeover target, he says. (nina.kienle@wsj.com)
(END) Dow Jones Newswires
June 02, 2026 04:20 ET (08:20 GMT)
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