The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1006 GMT - Pernod Ricard's earnings for the fiscal year may come in a little less than previously expected, Bernstein analysts warn. The French distiller, owner of liquor brands like Absolut vodka and Jameson whiskey, will likely see its sales dampened in the most recent quarter by weak demand in the U.S. and Europe and by continued reverberations from the Middle East conflict, Bernstein says. The brokerage cuts its fiscal-year earnings estimates for the company and lowers its target price on the stock to 115 euros from 117 euros. Shares gain close to 5% to 65.5 euros. (joshua.kirby@wsj.com)
0953 GMT - Porsche's long-term recovery path for EBIT margins is becoming clearer, and investors have responded positively, Citi analysts write. Having retested the 43-euro 100-day moving average, Porsche shares have rebounded and may soon test the 50-euro 12-month highs. Citi thinks Porsche's underlying earnings are stabilizing, versus falling peer group margins and consensus. In addition, other German automakers are seeing further deterioration in China, while Porsche doesn't face the same structural competitive threats in the EU and U.S. due to its client positioning. The new Porsche CEO's focus on costs, lower volumes, and higher margins is also a move in the right direction. Citi raises its target price on the stock to 56 euros from 53 euros and reiterates its buy rating. Shares rise 2% to 48 euros. (dominic.chopping@wsj.com)
0939 GMT - Shares of Singapore's three major banks finished at record highs, leading gains on the FTSE Straits Times Index. Oversea-Chinese Banking Corp.'s shares gained the most, closing 3.3% higher at 26.34 Singapore dollars. DBS Group ended 2.6% higher at S$68.64, while United Overseas Bank added 2.9% to S$41.69. Citi analyst Tan Yong Hong expects the three banks' profits to grow around 10% each in 2027 after three years of largely stable bottom lines, buoyed by better loan-growth prospects. He expects NIMs to recover toward 2019 levels, as system excess liquidity is consumed. Citi raises its target price for DBS to S$73.50 from S$65.00; for OCBC to S$28.40 from S$24.50; and for UOB to S$41.50 from S$37.40. (megan.cheah@wsj.com)
0932 GMT - Shell's second-quarter trading statement shows strong operational performance, which helps mitigate some of the impact of the Middle East conflict, JPMorgan's Matthew Lofting writes. The update will likely drive an upward revision to consensus expectations, he adds. The absence of 'loss-making' commentary around its chemicals unit will be welcomed while working capital inflows will help deleverage the balance sheet, he adds. Shares rise 2.8% to 2,994 pence.(adam.whittaker@wsj.com)
0927 GMT - SK Hynix's upcoming ADR listing is a test of investor appetite after the recent memory correction, says Charu Chanana, Saxo Markets chief investment strategist, in a note. Samsung Electronics fell 6.9% and SK Hynix declined 6.1% on Tuesday despite Samsung saying it expects another record quarter on robust demand. SK Hynix's ADR listing "brings a large new block of AI-linked equity supply to market just as investors are questioning whether AI infrastructure stocks have run too far," she says. Meanwhile, SK Hynix raising capital to expand capacity could potentially send memory from shortage to oversupply, the analyst says. Strong demand for SK Hynix's ADRs would indicate global investors still want more direct AI memory exposure, while weak demand would suggest AI enthusiasm is becoming more selective, she adds. (sherry.qin@wsj.com)
0914 GMT - Investors are likely slightly disappointed by Samsung Electronics' revenue forecast, according to Morningstar analyst Jing Jie Yu. He notes that Samsung's projected operating profit was in line with market expectations, but the revenue forecast of 171 trillion won was slightly below consensus estimates. The miss was likely driven by more moderate DRAM price hikes than expected, he says. That likely spooked investors increasingly pricing in the structural strength in memory prices, Yu adds. Samsung shares ended 6.9% lower as investors grew more cautious, trimming gains this year to just below 150%. (sherry.qin@wsj.com)
0911 GMT - Saint-Gobain is expected to return to modest sales growth in the second quarter as underlying demand gradually improves following a weak start to the year, Deutsche Bank Research analysts say in a note. The analysts expect Southern Europe and Asia-Pacific to remain the main growth drivers, supported by stronger residential construction activity, while Northern Europe shows early signs of recovery despite continued weakness in the U.K. Recent price increases should benefit the Americas later in the year, they add. The French building-materials supplier's profitability remains positive and recent portfolio disposals should lift margins from 2027 onward, they say. Shares trade 1.4% higher at 80.3 euros. (nina.kienle@wsj.com)
0907 GMT - Link Real Estate Investment Trust's manager appointing a new chief executive isn't likely to alter the strategic direction of the Hong Kong-listed REIT, say DBS Group Research analysts in a note. The REIT manager has appointed Neil Slater as CEO, effective March next year, and he is likely to bring extensive global real-estate experience from his past roles at Redevco and Aberdeen Investments, the analysts say. Nonetheless, the REIT should remain focused on its "back-to-basics" strategy, disposing noncore assets and returning excess capital to unitholders through buybacks, they say. These sales and buybacks could provide a near-term boost to units despite interest-rate uncertainty. DBS maintains its buy rating and target price of 43.65 Hong Kong dollars. Units closed at HK$37.34. (megan.cheah@wsj.com)
0858 GMT - Ericsson has shown resilient profitability but the environment is increasingly challenging, J.P. Morgan analysts write. Profitability has been driven by better operating efficiency and a model less prone to changes in regional mix, coupled with restructuring actions, the bank says. However, semiconductor and other component costs are increasing and could make it more challenging for Ericsson. The company has indicated that cost pressures are being managed through a mix of burden-sharing and supply-chain initiatives, but customer price increases are challenging in a subdued market. The risk is that operational efficiencies might not be enough to offset pricing pressures, it adds. U.S. mobile investments remain weak, likely because most of the U.S. 5G rollout is complete, but Europe and India could drive some growth. Shares in the Swedish telecommunications-equipment maker rise 0.6%. (dominic.chopping@wsj.com)
0854 GMT - The European airlines sector is looking increasingly optimistic as lower jet fuel prices ease pressure on profitability and reduce the risk of capacity cuts or financial distress, Bernstein analysts Alex Irving and Antoine Madre say in a research note. The analysts expect strong travel demand and resilient ticket pricing, particularly on long-haul and premium routes, to support earnings, even as lower fuel costs lessen the need for fare increases. International Consolidated Airlines Group and Ryanair are viewed as the sector's strongest near-term performers, while easyJet and Wizz Air are seen as facing greater competitive and pricing pressures, they add. IAG and Ryanair shares trade 0.1% and 1.4% higher, respectively. EasyJet and Wizz Air shares trade broadly flat and 0.7% lower, respectively. (nina.kienle@wsj.com)
0831 GMT - Shares in U.K. housebuilders rose after the Lloyds House Price Index for June showed average house prices making a modest return to positive territory. Although annual growth stands at only 0.6%, the direction of travel matters more than the pace, RBC Capital Markets analysts say. Affordability remains stretched, and activity data from the Bank of England points to a hesitant buyer pool but June's data offers a tentative signal that the market is finding its footing, RBC says. "With mortgage rates pulling back from their recent peaks and the first-time buyer market showing genuine resilience, the seeds of a more confident second half to 2026 are being sown," RBC says. Crest Nicholson is up 0.7%, followed by Bellway, up 0.6%, and Barratt Redrow, up 0.5%. (anthony.orunagoriainoff@dowjones.com)
0831 GMT - Memory makers' recent share-price correction doesn't signal a fundamental shift in the memory market, Counterpoint Research director MS Hwang said. Samsung Electronics fell 6.9% and SK Hynix declined 6.1% on Tuesday despite Samsung projecting another record quarter on robust demand. Some investors may think that much of the Samsung's upside, driven by expectations of stronger profitability, has already been priced in, Hwang said. "Recent labor strike efforts and political discussions around profit sharing may also raise concerns about future shareholder returns," he said. However, memory makers' fundamentals remain intact, he notes. According to Counterpoint's July memory price tracker, DRAM prices are expected to increase by 10%-20% in 3Q, above its initial 5%-10% forecast, as customers continue to pull forward orders. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
July 07, 2026 06:06 ET (10:06 GMT)
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