The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
2127 ET - Judo Capital keeps its bull at Jefferies despite questions over the Australian business lender's asset quality and risk settings. The stock tanked 40% on its guidance downgrade but Jefferies analyst Andrew Lyons points out that its revised outlook still implies annual underlying profit growth of about 30% over the two years to fiscal 2027. At a 40% discount to net tangible assets, Lyons maintains a buy rating on the stock. He tells clients in a note that the share-price reaction to the downgrade was severe. Valuation multiples now more than compensate investors for risks, he adds. Jefferies cuts its target price by 29% to 1.64 Australian dollars. Shares are down 1.4% at A$0.9025. (stuart.condie@wsj.com)
2109 ET - Malaysia's construction costs for new projects are expected to rise by 5%-15% in 2H, while approval delays linked to the evolving political landscape could push back project launches, CIMB Securities analyst Kenny Mak Hoy Ken says in a note. These factors, together with softer demand, could raise execution risks for developers even though most are maintaining their sales targets, he says. Industrial properties and Johor remain the sector's brightest spots, supported by industrial demand, data center investments and major infrastructure projects, he adds. CIMB maintains a neutral rating on Malaysia property sector, pegging UEM Sunrise as top pick, due to its direct exposure to key Johor catalysts. (yingxian.wong@wsj.com)
2107 ET - Gamuda's construction billings are expected to improve sequentially in fiscal 4Q, supported by a seasonal pickup in project activity and easing disruptions from the recent U.S.-Iran conflict, CIMB Securities analysts Kenny Mak Hoy Ken and Wei Yi Tan say in a note. The contractor is also on track to keep its order book above 50 billion ringgit through end-2026 after securing a record 25 billion ringgit in new jobs so far in FY 2026, they note. New property sales are expected to rise to 7 billion ringgit in FY 2027, from 4 billion ringgit a year ago, driven mainly by new launches in Vietnam and Singapore, they add. CIMB maintains a buy rating on Gamuda and keeps its target price at 6.00 ringgit. Shares are 1.2% higher at 4.30 ringgit. (yingxian.wong@wsj.com)
2027 ET - Life360's bull at Bell Potter expects investors to start focusing on the positives at the tracking app developer, after digesting a single short-term negative. The only reason analyst Chris Savage sees for investors' recent focus on relatively low growth in global active users is that Life360 may not have done a good job explaining the technical issues behind it. He reminds clients in a note that paid subscriptions are what drive revenue growth, and points out that these were very strong in the March quarter. Savage raises his subscription growth forecasts for the remainder of 2026 and reckons this metric will soon draw more attention. Bell Potter keeps a buy rating on Life360's ASX-listed stock and raises its target price 1.5% to 33.00 Australian dollars. Shares are at A$23.52. (stuart.condie@wsj.com)
2021 ET - Japanese stocks are lower in early trade on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Given the sustainability of earnings growth and current valuations in Japan, however, "AI and semi names are likely to remain the market's key driver," Citi Research's strategists say in a research report. "We maintain our view that the bull market will run into year-end," they add. Among the worst performers, Tokyo Electric Power is down 5.4%, TDK is down 4.5%, and Disco Corp. is 4.5% lower. The dollar is at 161.81 yen versus Y161.83 around Thursday's Tokyo stock market close. The Nikkei Stock Average is down 2.1% at 70832.18. (ronnie.harui@wsj.com)
1941 ET - Japanese stocks may fall on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Domestic tech equities may also be weighed by overnight decline in Nasdaq Composite as Micron Technology's blockbluster results failed to lift the broader tech sector. Nikkei futures are 785 points lower at 71615 on the SGX. The dollar is at 161.78 yen versus 161.83 yen around Thursday's Tokyo stock market close. The Nikkei Stock Average rose 4.6% to 72366.34 on Thursday. (ronnie.harui@wsj.com)
1939 ET - Comet Ridge's capital raising to buy out joint venture partner Santos in the Mahalo natural-gas project in Australia surprises its bull at Bell Potter. Comet Ridge is raising up to 45 million Australian dollars to acquire Santos's stake and expects to make a final investment decision on Mahalo in 1Q of 2027. "We had previously expected Comet Ridge would introduce a project level partner to fund both the Santos acquisition and the Mahalo development, the latter of which remains pending," says analyst Stuart Howe. Bell Potter's price target falls 33% to A$0.14/share. That reflects the impact of Comet Ridge's share placement and share purchase plan, alongside project delays and an assessment of the company's future equity requirements. Comet Ridge last traded at A$0.099. (david.winning@wsj.com; @dwinningWSJ)
1925 ET - Australian stocks look set to edge higher at the open. Local equities futures are up by 0.1% ahead of Friday's session, suggesting that the S&P/ASX 200 will pare the 0.9% deficit compiled so far this week. The benchmark index is coming off a 0.7% fall on weakness in financial stocks, which fell amid worries that a guidance downgrade by business bank Judo could hint at problems at other lenders. Ahead of the open, BHP said it would split leadership of the miner's Americas operations into two roles. U.S. equities were mixed. The DJIA rose 0.1%, the S&P 500 was flat, and the Nasdaq Composite fell 0.5%. (stuart.condie@wsj.com)
1902 ET - All eyes are now on the U.S. Food and Drug Administration as it weighs clearance of Echo IQ's EchoSolv heart-failure product, says Petra Capital. Clearance will trigger another A$10 million payment as part of Echo IQ's heads of agreement with Pro Medicus, which establishes a U.S. commercial partnership. Analyst Tanushree Jain says FDA clearance is highly likely and key to unlocking the U.S. commercial opportunity. She says that, timing wise, it has parallels to Pro Medicus's investment in ASX-listed 4DMedical. This investment was made just before FDA clearance of 4DMedical's CTVQ product and led to 4DMedical's share price rising strongly, which continued after FDA clearance. Petra Capital lifts its price target on Echo IQ by 19%, to A$1.30/share, and retains a "hold" call. Echo IQ ended Thursday at A$1.615. (david.winning@wsj.com; @dwinningWSJ)Stride Property has an opportunity to get back in investors' good books, suggests Forsyth Barr. The stock is trading at a big discount to its book value. Analyst Rohan Koreman-Smit attributes that partly to the lack of a clear strategic pathway and weaker operational metrics from its office portfolio. "We believe the recent board refresh provides an opportunity for Stride to revisit its strategy and provide the market with clarity on the future direction of the business," Forsyth Barr says. Detail on the specific steps and initiatives that SPG is undertaking would lift market confidence in any strategic changes, it says. Medium-term outcomes against which to measure its progress would help. Forsyth Barr retains an outperform call on Stride, which is up 0.9% at NZ$1.13 today. (david.winning@wsj.com; @dwinningWSJ)
1830 ET - Ord Minnett is delighted with Echo IQ's heads of agreement with Pro Medicus to establish the framework for a strategic investment and U.S. commercial partnership. Pro Medicus will invest an initial A$10 million. This will be followed by another A$10 million if Echo IQ's EchoSolv product gets approval by the Food and Drug Administration. "We view the key benefits of the deal as three-fold," says analyst Tom Godfrey. It is a material endorsement and a validation datapoint from a global imaging tech leader in Pro Medicus. It also gives a timely boost to Echo IQ's cash position and leads to a step-change in its immediate U.S. commercialization opportunity. Ord Minnett raises its price target on Echo IQ by 20%, to A$1.80/share. Echo IQ ended Thursday at A$1.615. (david.winning@wsj.com; @dwinningWSJ)
1821 ET - DigiCo Infrastructure REIT is upgraded to "buy," from "hold," by Jefferies as it advances development of its SYD1 data center in Sydney. Analyst Roger Samuel says DigiCo Infrastructure REIT is making good progress with the initial 20-megawatt upgrade at SYD1. "We have reasonable confidence that the next lot of upgrade (circa 40 MW) will be underway soon," Jefferies says. Demand is very strong in Sydney and Jefferies expects DigiCo Infrastructure REIT to be able to lease out the additional capacities as they come online. "Another catalyst is a special dividend in FY27 post-sale of U.S. assets," says Jefferies. "Valuation is lower than peers." Its price target rises 7.1%, to A$3.00/share. DigiCo Infrastructure REIT ended Thursday at A$2.43. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
June 25, 2026 21:27 ET (01:27 GMT)
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