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.
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)
0816 GMT - Yields on U.K. government bonds rise, tracking moves in U.S. and eurozone peers, after Iran attacked a U.S. military base in Kuwait in response to U.S. strikes against military targets in southern Iran. The latest events spark concerns about the fragile state of U.S.-Iran peace talks while oil prices increase as a result, reigniting worries about inflation. The U.S. and Iran have still not managed to hammer out a deal, though analysts say investors continue to expect that an agreement will be reached. Ten-year gilt yields move up 3 basis points to 4.837%, Tradeweb data show. However, they remain well below highs above 5.1% reached in mid-May. (jessica.fleetham@wsj.com)
0552 GMT - It remains too early to assess whether a takeover of easyJet would materially alter the competitive landscape across Europe, RBC Capital Markets analyst Ruairi Cullinane says in a research note. Investment firm Castlelake on Friday said it was in the early stages of considering a potential offer for the U.K. budget airline. While there is no certainty that an offer will be made, rival airlines might see some reason for encouragement if a portion of easyJet's aircraft were reassigned to other markets, the analyst says. New ownership is unlikely to result in a significant expansion of capacity, especially given aircraft supply constraints affecting the aviation sector as a whole, Cullinane adds. easyJet's profitability improvement program should provide support for a recovery in earnings, the analyst says. (nina.kienle@wsj.com)
0507 GMT - Some Chinese automakers' efforts to develop in-house autonomous-driving chips are unlikely to significantly erode Horizon Robotics' addressable market, Daiwa analysts write in a note. Investors may be overestimating the threat posed by BYD's newly unveiled Xuanji A3 autonomous-driving chip, they note. While BYD, XPeng, Li Auto and NIO have all introduced proprietary chips, the automakers are unlikely to target the mid- to low-end computing segments, where chips are becoming what they describe as "increasingly commoditized." That leaves Horizon Robotics well positioned in the mass-market Level 2 advanced driver-assistance systems segment, Daiwa said. The brokerage maintains its buy rating for the stock but cut its target price to HK$10.60 from HK$12.40. Shares last at HK$5.39. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0427 GMT - ARB's comment that it is "investing more in engineering than ever" generates enthusiasm at Citi. Analyst Sam Teeger believes the ASX-listed auto-accessories supplier has underinvested in engineering and says any increased spending on this front is music to his ears. However, he warns clients in a note that it may take time for any increase in engineering investment to drive a meaningful lift in sales. Citi has a last-published neutral rating and a A$17.40 target price on the stock, which is up 0.7% at A$19.39. (stuart.condie@wsj.com)
0137 GMT - Virgin Australia gets a new outperform rating at RBC, albeit with one significant caveat. Initiating coverage of the stock, analyst Owen Birrell tells clients in a note that the ASX-listed airline is likely to remain focused on margin improvement and shareholder returns as it operates in what he calls a rational two-player market. As such, the stock looks undervalued to Birrell. However, he warns investors to be aware of the stock's low liquidity. He says this could represent heightened risk if market conditions deteriorate, especially with Virgin Australia's value-conscious customers potentially more sensitive to an economic downturn. RBC puts a A$3.50 target price on the stock, which is down 1.45% at A$2.72. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
June 01, 2026 12:20 ET (16:20 GMT)
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