The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
2115 ET - Sunway's recent acquisition of a Singapore land parcel through a 30%-owned joint venture is expected to support long-term recurring income growth, Maybank IB analyst Wong Wei Sum says in a note. The 14.2-acre Bayshore Drive government land site, acquired for S$2.1 billion, looks reasonably priced given its strategic location. The mixed-use development, with an estimated gross development value of S$4.0 billion, should benefit from direct integration public transportation options, and reinforces Sunway's strategy of expanding its Singapore pipeline through capital-efficient JVs, she adds. Maybank raises Sunway's target price to 5.58 ringgit from 5.42 ringgit, while maintaining a hold rating on the stock. Shares are 0.6% lower at 5.23 ringgit. (yingxian.wong@wsj.com)
2112 ET - Maxis could see core net profit rise 6%-8% on year in 2Q, supported by steady service revenue growth and further cost savings from efficiency initiatives, says CIMB Securities analyst Choong Chen Foong in a note. Core net profit is forecast to grow 4% in 2026 before easing 3% in 2027 due to the full-year impact of Digital Nasional's losses following the ownership transition, he says. Maxis is a shareholder of Malaysia's state-backed 5G infrastructure firm Digital Nasional. Digitalization efforts and lower capital spending are expected to support earnings resilience, he adds. CIMB maintains a buy rating on Maxis and keeps target price at 4.35 ringgit. Shares are 0.3% higher at 3.61 ringgit. (yingxian.wong@wsj.com)
2109 ET - Gold still offers value as a hedge against large equity-price declines, says Capital Economics' Thomas Mathews in a note. The yellow metal has arguably behaved more like a "risky" asset than a "safe" one lately, as its recent price volatility has been comparable with that of the benchmark S&P 500 stock index, the strategist says. Gold's underperformance amid the Middle East conflict also seems to undermines its alleged inflation-hedge status, he says. However, gold's link with real bond yields still seems intact, and he expects that any fall in real yields would give the metal a boost. He also doesn't anticipate gold's recent positive correlation with equities to last if the economy takes a blow and spurs the Federal Reserve to cut policy rates aggressively. Spot gold rises 0.3% to $4,022.19 a troy ounce. (megan.cheah@wsj.com)
2103 ET - A challenging outlook for Australia's housing market keeps Macquarie analysts cautious on REA Group. They tell clients in a note that the News Corp-controlled real-estate advertiser typically trades at a discount to its long-run valuation against such a backdrop. While REA reported a strong 13% on-year jump in residential listings for June, the Macquarie analysts think this is probably driven by some investors exiting the market ahead of tax reforms. They see volumes being supported by this over the next six months, but still forecast a 6% cumulative drop in listings through fiscal 2029. Macquarie keeps a neutral rating on the stock and raises its target price by 6.5% to 165.00 Australian dollars. Shares are up 1.0% at A$162.84. News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires. (stuart.condie@wsj.com)
2052 ET - NextDC's contract utilization update suggests upside to consensus expectations for FY 2028 earnings, according to its bull at Citi. Analyst Siraj Ahmed tells clients in a note that a 73-megawatt increase in contracted utilization over the last 10 weeks of FY 2026 is unlikely to surprise investors, but points out that a contract like this is likely to be more lucrative. Assuming NextDC can generate 1.6 million Australian dollars of Ebitda per megawatt, Ahmed suggests the contract implies A$115 million in annual Ebitda. With a fast ramp up in capacity, he sees potential for 75% of it to be generating earnings in FY 2028, or A$85 million of Ebitda. Citi has a last-published buy rating and A$19.10 target price on the stock, which is up 3.0% at A$13.44. (stuart.condie@wsj.com)
2021 ET - ResMed's bulls at Canaccord Genuity think its latest acquisition has come at an awkward time for the breath-tech supplier. The broker's analysts say investors were just starting to get excited about ResMed's gross-margin expansion and potential to push earnings leverage, which may be challenged by the acquisition of the Noctrix startup. The analysts do see opportunity in trying to address restless leg syndrome, which is Noctrix's focus, but warn that ResMed shares are struggling for direction ahead of the company's 4Q update. Canaccord Genuity cuts its target price on ResMed's ASX-listed stock by 10% to 40.00 Australian dollars. Shares are down 0.5% at A$28.05. (stuart.condie@wsj.com)
2016 ET - Japanese stocks are higher in early trade, following recent selloffs in technology stocks. Energy companies and trading houses are leading the gains, partly due to expectations for higher oil prices amid the Iran conflict. Inpex is up 2.8% and Mitsubishi Corp. is 1.7% higher. The dollar is at 162.47 yen, compared with Y162.49 as of Monday 5 p.m. Eastern time. Investors are tracking developments in the Middle East after the U.S. military said Monday it launched a new round of strikes intended to further degrade Iran's ability to attack commercial shipping in the Strait of Hormuz. The Nikkei Stock Average is up 0.4% at 64371.34. (kosaku.narioka@wsj.com; @kosakunarioka)
1957 ET - Qantas Airways' embarkation on its ultra long-haul venture is seen at Morgan Stanley as the catalyst for the stock to re-rate. Maintaining an overweight rating on the stock, MS analysts tell clients in a note that its international business is the most underappreciated part of Qantas's business outlook and that consensus forecasts do not fully reflect the earnings benefit from fleet investments. This renewal and the nonstop routes Europe and the U.S. create a structurally higher-quality international business, they say. They point to increased premiumization, lower density craft, greater fleet flexibility, and improved network economics. MS lifts its target price 18% to 12.50 Australian dollars. Shares are at A$10.09 ahead of the open. (stuart.condie@wsj.com)
1948 ET - Japanese stocks may rise following recent selloffs in technology stocks. Nikkei futures open at 65155 on the SGX, up 340 points from Monday and up 1170 points from Friday. Japanese markets were closed Monday for a national holiday. The dollar is at 162.50 yen, compared with Y162.34 as of Friday's Tokyo stock market close. Investors are focusing on developments in the Middle East after the U.S. military said Monday it launched a new round of strikes intended to further degrade Iran's ability to attack commercial shipping in the Strait of Hormuz. The Nikkei Stock Average fell 4.0% to 64141.12 on Friday. (kosaku.narioka@wsj.com)
1925 ET - AIC Mines has been sold off after its 4Q output softened slightly, but Ord Minnett stays bullish and says there aren't likely to be any lingering issues from the quarterly result. Ord Minnett raises its price target by 5.9%, to A$0.90/share, citing AIC Mines's new outlook that includes an accelerated expansion of its Eloise copper project. AIC Mines now expects to reach 25,000 tons of copper concentrate annually by FY29, beating expectations. "There is now improved valuation appeal," says analyst Paul Kaner. AIC Mines's share price closed Monday at A$0.625, close to a one-month low. Ord Minnett retains a "speculative buy" call on its stock. (david.winning@wsj.com; @dwinningWSJ)
1918 ET [Dow Jones]--Car parts retailer ARB's share price has underperformed the ASX 300 index by some 50% over the past 12 months. That means its price-to-earnings multiple is now at its lowest level in a decade. Still, its bull at Jefferies says the business is intact. Analyst John Campbell attributes the sharp share-price underperformance to excessive valuation metrics applied to a consumer discretionary stock leading into a protracted downturn. "Fundamentally, we don't think anything's changed," Jefferies says. ARB isn't facing disruption and the market structure hasn't got tougher. "The Australian cycle's weak but at 16x PE in year three of the downturn, it looks cheap to us," Jefferies says. Its price target falls 17% to A$25.00/share. ARB ended Monday at A$17.41. (david.winning@wsj.com; @dwinningWSJ)
1910 ET - Is Atlas Arteria's dividend at risk after IFM gained majority control of the toll-road owner? Macquarie thinks it could be. Atlas Arteria had previously guided to a dividend of A$0.40/share in 2026. "However, following the change in control and a new chairperson, we see potential for a return to dividend being aligned with cash flow from the underlying assets, as Atlas Arteria's surplus cash has now been deployed," Macquarie says. Its base case assumes a cut to the 2H dividend to 13.5 Australian cents. It also expects the dividend to be flat in 2027 and increase by A$0.04/share in 2028. That assumes no change in currency rates. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
July 20, 2026 21:15 ET (01:15 GMT)
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