The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0902 GMT - Investors in Germany's Merck KGaA might be encouraged with its proposed acquisition of Bio-Techne given the company exceeded expectations in past big deals, UBS analysts say in a research note. In previous deals for Millipore, Versum and Sigma-Aldrich, the life-sciences and chemical group beat initial cost-saving targets while generating additional revenue on top, according to UBS. The portfolio of lab-tools supplier Bio-Techne is highly skewed to the U.S., and Merck could leverage its international footprint to generate more revenue, the analysts say. "While the CFO encouraged investors to not over-estimate additional savings at this early stage, we expect that the market will assume more based on the prior Merck playbook," UBS says. Shares fall 2.2%. (adria.calatayud@wsj.com)
0854 GMT - Bellway looks highly appealing to investors thanks to a combination of its valuation, strong balance sheet, and solid capital returns, Berenberg analyst Harry Goad says. The house builder's strong balance sheet is positioned to fund capital returns to shareholders despite the downbeat market outlook, Goad says. It is expected to return about 700 million pounds--around 32% of its market cap--over the next three years, he says. "We don't see any immediate positive catalysts on the horizon, but for investors who value the capital returns angle with strong financials, we think there is an attractive entry point," Goad says. Berenberg upgrades its rating on the stock to buy from hold, and raises the target price to 2,400 pence from 2,100 pence. Shares are up 2.4% at 2,062 pence. (anthony.orunagoriainoff@dowjones.com)
0851 GMT - Merck KGaA's proposed acquisition of life-science tools supplier Bio-Techne seems like a strong strategic fit, analysts at UBS say in a research note. The deal adds complementary growth assets that don't dilute the profitability of Merck's life-science business and brings Bio-Techne's protein-science expertise to its portfolio, the analysts say. The acquisition should immediately benefit sales and adjusted Ebitda margin for the German pharmaceutical-and-chemical group, according to UBS. Merck doesn't see any material overlap that could raise antitrust concerns, the analysts add. Shares fall 2%. (adria.calatayud@wsj.com)
0851 GMT - Recent volatility in stocks linked to artificial intelligence amounts to some profit-taking from investors rather than a fundamental break, UniCredit's Christian Stocker writes in a note to clients. Investors have rewarded semiconductor companies in recent months, propelling shares to all-time highs on expectations that demand for chips to power AI data centers will stay strong for years to come. However, the rally lost steam in recent weeks as some investors started to question whether high valuations and capital expenditures are justified. "We view this as a temporary correction within a still-intact long-term AI growth trend," Stocker says. (mauro.orru@wsj.com)
0840 GMT - Barratt Redrow's stock has fallen by around 43% over the past year, but it is now screening attractively for investors, Berenberg analyst Harry Goad says. Despite a challenging backdrop, the house builder's decline in share price is overdone, and there is an attractive valuation opportunity, Goad says. Its balance sheet is robust, with Berenberg forecasting a net cash position of around 600 million pounds at the end of both fiscal years 2026 and 2027. This comes after a total capital return of 8% per year, with Goad estimating it can return close to 25% of its market cap over the next three years. Berenberg upgrades its rating to buy, from hold, lowering the target price to 348 pence from 414 pence. Shares are up 1.5% to 298.40 pence.(anthony.orunagoriainoff@dowjones.com)
0840 GMT - Zeekr's overseas rollout came relatively later than some peers, but its sales momentum has scaled rapidly since 2H25, which Jefferies believes the market is not yet fully appreciating the earnings upside this brings to Geely, analysts write in a note. Zeekr is seeing strong early traction in Australia, with its five-seater SUV 7X having ranked top seller in the 65,000 Australian dollars range and mid-size SUV market since January, they add. Just 18 months into the market, demand is well established, with more than 1,000 pre-orders before the launch while tight inventory is keeping delivery lead times at 8 to 12 weeks, they say. The recent uptick in fuel prices should begin to support reported deliveries through September, they add. The brokerage maintains a buy rating for the stock at a target price of HK$28.00. Shares last at HK$17.06. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0837 GMT - AI-driven equity markets have become increasingly unstable, Tickmill Group analyst Patrick Munnelly says in a note. "Leveraged retail exposure, crowded semiconductor longs and fragile sentiment around memory demand have combined to create a market that is highly vulnerable to negative headlines," he says. Heavy losses across Asia on Friday show that markets could swing "from relief to fragility in a single breath." Meanwhile, oil's disinflationary cushion is gone, replaced by renewed security risks in the Strait of Hormuz, Munnelly says. While it doesn't necessarily mean the AI trade is broken, crowded positioning means fundamentally positive stories can struggle when the broader tape turns, he adds.(sherry.qin@wsj.com)
0836 GMT - Luk Fook Holdings' outlook appears promising to DBS Group Research's Mavis Hui, after the Hong Kong jewelry retailer's key profitability metrics hit record highs in FY 2026. Its same-store sales growth of around 40% in Hong Kong, Macau and overseas markets and roughly 20% in mainland China from April 1 to June 21 signal continued consumer demand for its products despite gold-price volatility, the analyst says. The company aims to maintain double-digit revenue growth in FY 2027, she notes. It will likely focus on entering at least two new markets and posting a net gain of 30 overseas shops, while boosting its product differentiation and operational efficiency, she adds. DBS maintains its buy rating and target price of 36.74 Hong Kong dollars. Shares closed 6.75% higher at HK$21.82. (megan.cheah@wsj.com)
0827 GMT - It is too early to say what will happen to Bayer's dividends after the U.S. Supreme Court ruled in the company's favor in a case over its Roundup weedkiller, according to Jefferies analysts. Given the German company's debt levels and, perhaps, the need for dealmaking to boost its pharma business, investors shouldn't rush any assumptions on the dividend, the analysts say in a research note. Jefferies lifts its target price on Bayer stock to 46 euros from 40 euros, citing the favorable Supreme Court ruling. Shares rise 0.1% to 47.06 euros. (adria.calatayud@wsj.com)
0826 GMT - Zhipu AI's financial outlook could be better than previously expected, HSBC analysts say in a research note. Guidance of $1 billion in annualized revenue run rate by December is in line with HSBC's current expectations. HSBC had previously forecast ARR of $340 million. Domestic chip compatibility for AI inferencing has improved, partly resolving HSBC's concerns over chip shortage. Meanwhile, HSBC notes that Zhipu AI's latest models are among top performers globally, adding to investor confidence. HSBC maintains a hold rating on the stock and raises its target price to HK$1,900 from HK$920.00. Shares closed at HK$2,046.00. (tracy.qu@wsj.com)
0824 GMT - Shares of European semiconductor companies are following their Asian peers in negative territory as investors ditch stocks linked to artificial intelligence. A strong set of earnings and outlook from Micron Technology late Wednesday failed to reignite a rally in AI stocks on Thursday. On Friday, South Korean memory-chip maker SK Hynix closed 8.4% lower, while Taiwan Semiconductor Manufacturing Co. was down 2.1%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 0.9% and 3.3%, respectively. German chip maker Infineon Technologies is down 2.9%. STMicroelectronics shares are down 2.5%. Meanwhile, the E-mini Nasdaq 100 futures contract is down 0.8%. (mauro.orru@wsj.com)
0817 GMT - A Bayer breakup looks possible, but it shouldn't be taken for granted even if the U.S. Supreme Court ruled in the company's favor in a case over its Roundup weedkiller, Jefferies analysts say in a research note. While many think the Supreme Court ruling could make a breakup more likely, the challenges the group's pharma business would face as a standalone company remain a potential hurdle, the analysts say. The German group's pharma business is expected to grow at a slower pace than peers over the next five years, and a couple of drugs that should help drive that growth will face risk from rival products, they add. Moreover, its drug pipeline is at an early stage, and its debt load leaves little room for acquisitions, according to Jefferies. Shares fall 0.6%. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
June 26, 2026 05:03 ET (09:03 GMT)
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