The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0648 GMT - BMW's profit warning is a "rare misstep" for the German carmaker, which generally corrects course without the need for major restructuring that calls for hefty charges, Bernstein analysts say in a note. It is clear that the new CEO, Milan Nedeljkovic, is casting a fresh, more critical eye on the assumptions that drove 2026 margin guidance, they say. Bernstein estimates that issues with the Chinese market are the most important factor affecting the company. The steps BMW takes now--which will have an unspecified negative impact in 2H--should bring more visible payback in coming years, they say. (sarah.sloat@wsj.com)
0646 GMT - China is likely to continue to raise spending in AI in the next few years, according to BofA Securities in a research note. BofA expects China's AI data-center capital expenditure to grow from $91 billion in 2025 to $330 billion in 2030, driven by leading internet and cloud platforms, alongside government funding. Within commodities, copper is among BofA's top picks as powering AI will indirectly drive demand for the metal on persistent supply tightness, the analysts say. Minor materials, such as rare earths, tungsten and uranium, are small in volume but critical in value, they note. BofA has buy ratings on Zijin Mining and JL Mag Rare-Earth. (tracy.qu@wsj.com)
0646 GMT - Optical fiber sector is likely to benefit from China's AI data center expansion, according to BofA Securities in a research note. Optical fiber demand is shifting from telecom to AI, driving strong growth in high-end segments, the analysts say. "While overall supply is sufficient, constraints in preform capacity are tightening availability of high-spec fiber and supporting pricing," they say. BofA has a buy rating on Jiangsu Zhongtian Technology on fiber price upside, subsea recovery, and grid growth. Shares last traded at 54.12 yuan. (tracy.qu@wsj.com)
0646 GMT - France's Publicis and Britain's WPP look set to benefit from expectations of higher advertising spending this year, as AI investments are proving to be a big enough tailwind to offset uncertainty created by the Middle East conflict, Citi says in a note. WPP Media, the media-buying arm of the London-based ad group, raised its forecast for global ad-revenue growth in 2026 to 8.9%, up from 7.1% previously. Higher spending from both AI companies and traditional advertisers is the main factor behind the increase, making the ad-industry backdrop resilient to challenges posed by the war, analysts at Citi say. "This is an incremental positive for both WPP and Publicis," the analysts say. (adria.calatayud@wsj.com)
0633 GMT - Italian diagnostics company DiaSorin has issued guidance for this year and targets for 2030 that look stretched, Deutsche Bank's Jan Koch says in a research note. "We downgrade DiaSorin to sell from hold, as we believe consensus underestimates the risk of a 2026 guidance cut, alongside overly ambitious assumptions embedded in the company's mid-term growth framework for the Liaison NES [molecular-diagnostics] platform," the analysts say. Deutsche Bank is more cautious than the market on DiaSorin's top-line momentum and profitability prospects due to competition and expectations of a gradual rollout of its NES diagnostics device, the analysts add. Deutsche Bank also cuts its target price on DiaSorin to 58 euros from 62 euros. Shares in DiaSorin closed 1.3% lower at 66.44 euros on Tuesday. (adria.calatayud@wsj.com)
0631 GMT - BMW was expected to revise its guidance, but the magnitude of the cut is larger than expected, Deutsche Bank analyst Tim Rokossa writes. Rokossa notes that the stock has underperformed recently and the company cancelled a long-planned CEO-investor meeting. BMW said the guidance cut is due once again to a softer market in China and the wider Asia-Pacific region, alongside second-order effects stemming from the Middle East conflict. Deutsche Bank says there are now more questions than answers and upcoming investor updates in the U.S. at the end of June and second-quarter results in late July might not provide much more detail. The bank lowers its target price on the stock to 90 euros from 100 euros and keeps at buy. Shares closed at 62.60 euros. (dominic.chopping@wsj.com)
0630 GMT - Sumitomo Osaka Cement's earnings stand to benefit from two tailwinds, Nomura's Takaomi Kono says in a research report. Given recent increases in energy and logistics costs, the Japanese company announced it would raise cement prices by 3,000 yen per ton or more from April 2027, the analyst notes. Nomura also lifts its sales growth forecast for the company's electrostatic chucks to 44% from 41% for this fiscal year, to 27% from 18% for next fiscal year, and to 15% from flat for fiscal year ending March 2029. Its electrostatic chucks are for semiconductor production equipment and are mainly used in NAND applications. Nomura raises the stock's rating to buy from neutral and the target price to Y7,060 from Y5,400. Shares are 7.7% higher at Y6,168. (ronnie.harui@wsj.com)
0604 GMT - Indonesia is likely to retain its emerging market status by global index provider MSCI in its upcoming review due in June, UOB Kay Hian's Indonesia research team says in a note. In late January, MSCI flagged investability issues that could lead to Indonesia being reclassified as a "frontier market," a rung below its current status. While there has been ongoing reforms undertaken by the Indonesia Stock Exchange to enhance transparency and free float, MSCI could still continue to monitor market accessibility. A favorable review would also be a near-term catalyst for renewed foreign interest and a boost for the Indonesian markets. (amanda.lee@wsj.com)
0546 GMT - BMW shares are expected to trade meaningfully lower this morning after the automaker cut guidance and warned of limited visibility on the China/Asia Pacific turnaround, RBC Capital Markets analyst Tom Narayan writes. Deterioration in the Chinese passenger car market is accelerating, with competitive pressures spilling over into the broader Asia Pacific, while the Middle East conflict continues to weigh on energy costs and global consumer sentiment. While BMW is expanding its cost reduction program, the associated restructuring charges will create an additional one-time headwind in the second half, he adds. The China/APAC struggles are largely macro-driven, indicating a negative readacross for the European automakers such as Mercedes and Volkswagen, which could issue similar profit warnings prior to second-quarter earnings, Narayan says. (dominic.chopping@wsj.com)
0545 GMT - Surya Semesta Internusa looks well-placed to ride Indonesia's emerging electric-vehicle manufacturing wave via its Subang industrial estate, Maybank Sekuritas Indonesia's Kevin Halim says in a research report. The conglomerate is targeting a strong rebound in industrial land sales to 135 hectares in 2026 from 47 hectares in 2025, driven by recovering demand in Indonesia's Subang, the analyst notes. The Indonesian company's hotel segment is also likely to turn around this year following the reopening of Paradisus by Meliá Bali resort in February 2026. The brokerage resumes coverage of the stock with a buy rating and a target price of 1,850 rupiah compared with 1,500 rupiah previously. Shares are 0.3% higher at 1,665.00 rupiah. (ronnie.harui@wsj.com)
0543 GMT - Monetization of XPeng's humanoid robot and robotaxi efforts remains limited over the near term, say Bernstein analysts in a note. That said, the analysts turn tactically positive on XPeng's upcoming Mona model launches, with the series well-positioned in the mass market on strong tech at accessible prices. There's been resilient volumes for the Mona M03, while the L03 compact SUV launching in July marks its SUV entry and the planned L05 mid-large SUV should further refresh the lineup, support sales and drive interest. However, Bernstein cuts the target price on XPeng's ADRs to $20.00 from $22.00 to reflect weaker earnings visibility amid elevated AI investments. The ADRs last closed at $13.84. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0516 GMT - Singapore is well positioned to serve as a strategic hub for capturing Asia's growing asset and wealth management opportunities, according to a PwC report. PwC projects assets under management in the Asia-Pacific region will reach $34.5 trillion by 2030, expanding at a faster compound annual growth rate than in North America and Europe, with significantly greater untapped growth potential. The firm highlights Singapore's structural advantages, including its scale as one of the region's two largest international investment hubs, its status as a destination for high-net-worth wealth, its leadership in WealthTech and its emergence as a testing ground for tokenized fund structures. The report also suggests firms seeking to capture more opportunities must avoid relying on a single playbook for the region and diversify their offerings. (jason.chau@wsj.com)
(END) Dow Jones Newswires
June 17, 2026 02:49 ET (06:49 GMT)
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