The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1107 GMT - SSE's business update is a solid statement with strong hydropower output, RBC Capital Markets analyst Alexander Wheeler says in a research note. The U.K energy company continues to deliver on plan with positive news on the installation at offshore wind farm Dogger Bank and a significant ramp-up in networks capital expenditure, Wheeler says. Furthermore, there is potential for further investment opportunity after an update from the U.K.'s power grid operator, the analyst adds. SSE shares trade 2.1% lower at 2,417 pence. (nina.kienle@wsj.com)
1104 GMT - Partners Group could be entering a period of falling demand for private asset funds, an unprecedented situation that makes it difficult to forecast the investment group's growth, Jefferies analyst Thomas Mills writes. The Swiss investment group's second-quarter earnings didn't provide negative news, Mills says. But "a lack of precedent for what a sustained downdraught in evergreen demand might look like dents our confidence in the durability of our forecasts," the analyst writes. Evergreen funds give investors in typically illiquid private assets intermittent liquidity. Though evergreen funds saw gross inflows of $4.2 billion in the first half of 2026, five funds are expected to trigger redemption limits, the analyst says. Partners Group shares fall 5.4%. (josephmichael.stonor@wsj.com)
1026 GMT - Frasers's full fiscal year results prove that the company's strategy is working, analysts at Panmure Liberum say in a note. The U.K. retailer posted revenue of 5.33 billion pounds, in line with expectations, as well as a strong gross margin at 48.4%. Frasers is implementing a retail transformation plan led by CEO Michael Murray. "We remain optimistic that Frasers will take share and its strong cash flow and balance sheet leaves it in an excellent position to further strengthen its strategic investments," the analysts say. (andrea.figueras@wsj.com)
1021 GMT - UniCredit will post above-consensus net profit figures for the second-quarter, Bank of America analysts forecast. Positive deposit flows and stable costs will help the Italian bank notch net profit of 3.1 billion euros for 2Q, 9% ahead of market consensus, the analysts say. UniCredit stock is undervalued given the bank's capacity to deliver further cost cuts and its potential to return capital to shareholders, they say. Mergers activity within European banking also presents opportunities. "Consolidating fragmented banking markets comes with significant value creation and this potential is undervalued, in our view." UniCredit shares rise 1%. (josephmichael.stonor@wsj.com)
1019 GMT - BASF's upgrade to its guidance confirms stronger near-term earnings momentum, MWB Research analyst Abed Jarad says in a research note. The German chemical giant's preliminary figures showed a strong pricing-led beat to earnings, supported, among other factors, by sustained volumes rather than a broad-based recovery in underlying demand, Jarad says. "BASF's resilient supply setup should allow it to keep benefiting if disruptions persist, although weaker demand and working-capital pressure remain key risks," he adds. MWB raises its recommendation to buy from hold, and raises its price target on the stock to 55 euros from 52 euros. Shares trade 0.5% up at 48.195 euros. (nina.kienle@wsj.com)
1018 GMT - ASML's second-quarter earnings print gives investors many reasons to be bullish on the stock, Bank of America analysts write. Investors are focused on concerns about how quickly ASML can ramp up production of its lithography machines, the analysts say. Still, the Dutch company's management is confident for its production estimates beyond 2027, the analysts say. Company guidance for memory revenue growth of 75% is well ahead of U.S. peers, suggesting ASML will capture the lion's share of spending by memory makers going forward. Moreover, ASML's expanded gross margins won't be transitory, they say. The analysts raise their EPS estimates for 2026 through 2028 by 23%-25%. Shares in the chip-machine supplier rise 1%. (josephmichael.stonor@wsj.com)
1001 GMT - ASML Holding doesn't need to raise prices of its semiconductor-making machines to boost its gross margin next year, Jefferies analysts write in a research note. The Dutch group's CFO Roger Dassen alluded to the possibility of price increases, saying in an earnings call that a tight chip market gave the company better pricing power. However, the sharp uptick in ASML's gross margin in the second quarter and the company's move to raise gross margin guidance for 2026 suggest that ASML doesn't need higher increases to get its margin in the high 50s next year, analysts say. ASML shares trade 1% higher at 1,564.20 euros.(mauro.orru@wsj.com)
0946 GMT - ABB's second-quarter results are once again impressive, with the order-intake beat and upgrade to revenue guidance the key standouts, RBC Capital Markets analysts say in a research note. The Swiss industrial-technology company has excellent positioning not just in the data center equipment field but in electrification investments overall, the analysts say. While pricing still looks modest, it is an improvement over the first quarter and helps the earnings quality of the backlog, they add. The Rotork acquisition makes sense, even if ABB paid full price, RBC says. Shares trade 3.1% lower at 80.6 Swiss francs. (nina.kienle@wsj.com)
0943 GMT - ASML Holding's decision to upgrade its gross margin projections for the year was the biggest surprise in its second-quarter update, Berenberg's Tammy Qiu writes in a note to clients. The Dutch supplier of semiconductor-making equipment raised its sales guidance for the second time, but it also boosted its gross margin outlook this time. ASML's gross margin--a closely watched metric of pricing power and profitability--should come in between 55% and 57% this year, above a prior range of 51% to 53%. "Based on our investor feedback, the gross margin guidance was a positive surprise," Qiu says. ASML shares trade 1.3% higher at 1,569.60 euros. (mauro.orru@wsj.com)
0932 GMT - Publicis Groupe's guidance upgrade driven by new business wins is a positive surprise given that some investors presumed the French advertising group was on the back foot in recent pitches, analysts at Bank of America say in a research note. The latest business wins should also support Publicis' organic growth next year, signaling the company can deliver organic growth of 4% to 5% in net revenue again, the analysts say. The company's new guidance also embeds cautious assumptions for its Sapient tech-consulting arm, which was hit by weak demand in the first half, the analysts add. Shares rise 2.8%. (adria.calatayud@wsj.com)
0926 GMT - ABB's second-quarter results confirm its continued strength in electrification markets, Berenberg analysts Richard Dawson and Scott Humphreys say in a research note. The Swiss industrial-technologies company posted results broadly in line with expectations, alongside higher-than-expected order intake and an upgrade to its revenue guidance, the analysts note. ABB also announced its acquisition of Rotork for $5.5 billion, which should enhance the company's automation offerings, they add. ABB shares trade 2.84% lower at 80.82 Swiss francs. (nina.kienle@wsj.com)
0912 GMT - Although Ocado's cash flow potential suggests management's midterm targets are achievable, questions over their ambition remain, RBC Capital Markets analysts Manjari Dhar and Richard Chamberlain say. RBC questions whether the online grocer will be able to compete effectively with alternatives such as manual in-store pick ups. Before Thursday's release investors paid a premium for its stock relative to its future sales, the analysts say in a note. The analysts say they feel it is overvalued as they are skeptical Ocado will hit its medium-term technology goals, and doubt it will land any more massive, game-changing supermarket partnerships anytime soon. "We think capacity is likely to remain ahead of demand in the near term, which pressures profitability," RBC says. Shares are down 15% at 151.90 pence. (anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
July 16, 2026 07:07 ET (11:07 GMT)
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