The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0647 GMT - Bayer reported strong results for the second quarter and reiterated its full-year guidance, which should be well received by investors, analysts at J.P. Morgan say in a research note. The German agriculture and pharmaceutical conglomerate reported quarterly sales and adjusted earnings that exceeded consensus expectations, and its crop-sciences and pharma divisions--the group's biggest--both beat forecasts, the analysts say. Bayer also reiterated its annual outlook at constant currency and, given that consensus estimates currently sit below the company's guidance, analysts could raise their expectations as a result, JPM says. Bayer shares are likely to outperform Tuesday, the analysts add. (adria.calatayud@wsj.com)
0646 GMT - China's property sector likely has potential for some upside, say HSBC analysts in a research note. Although no major supportive measures were unveiled in the July Politburo meeting, the reiteration of a supportive stance is "still crucial to protecting the nascent sales recovery and reinforcing homebuyer sentiment," they say. HSBC expects local governments to roll out modest easing measures, such as the relaxation of the housing provident fund and targeted home purchase subsidies. HSBC sees "greater potential for upside surprises" among residential developers, with a preference for China Resources Land and C&D International Development. (tracy.qu@wsj.com)
0641 GMT - Mapletree Pan Asia Commercial Trust's overseas portfolio could require several quarters before it recovers meaningfully even as the segment nears an inflection point, says DBS Group Research's Tabitha Foo in a note. The real-estate investment trust's Hong Kong asset Festival Walk's shopper traffic and tenants' sales marked the a second consecutive quarter of improvement. However, this has yet to translate into rent increases as tenant negotiations remain cautious, she notes. Meanwhile, its Japan segment's net property income margin declined more than the analyst expected, with a certain submarket still facing substantial vacancy and difficult leasing conditions, she adds. DBS trims its target price to 1.55 Singapore dollars from S$1.65 but maintains a buy rating. Units are flat at S$1.32. (megan.cheah@wsj.com)
0609 GMT - Parkway Life REIT's revenue could benefit from continued outperformance at two of its hospitals, says DBS Group Research's Tabitha Foo in a note. The real-estate investment trust shifted to a revenue-sharing model with the two hospitals, which delivered a pleasant surprise to the REIT's top line through a 0.8 million Singapore dollar uplift, the analyst says. She anticipates that a third hospital, Mount Elizabeth, could also transition to the revenue-sharing model after it completes its enhancements. This could be a key catalyst for Parkway Life's stock, as Mount Elizabeth is the largest contributor to the REIT's Singapore portfolio, she says. DBS retains its buy rating and S$4.75 target price, citing attractive valuations. Units add 0.5% to S$4.24.(megan.cheah@wsj.com)
0532 GMT - South Korea's memory supercycle is expected to be stronger and longer than previous upcycles, driven by rising compute demand and deep supply shortages that may last until 2030, Goldman Sachs strategists say. Despite a recent selloff amplified by leveraged ETFs, current market valuations do not reflect the strong pricing power and profitability of Korean chipmakers, they add. Concerns over hyperscaler spending, funding conditions and rising competition are valid but unlikely to disrupt the broader cycle. Positioning has also improved after leveraged ETF assets declined, margin exposure eased and regulatory oversight increased. Even non-memory stocks present opportunities, with 2026-2028 earnings forecast to grow sharply. Goldman Sachs remains overweight on Korean equities with a 12-month benchmark Kospi target of 12000. The index was recently at 6233.82. (jason.chau@wsj.com)
0523 GMT - Fresenius Medical Care's second-quarter results beat consensus expectations, but the company's reiteration of full-year guidance suggests earnings are likely to contract in coming quarters, J.P. Morgan analysts say in a research note. The German dialysis specialist reported a quarterly adjusted operating profit of 569 million euros, ahead of consensus estimates of 514 million euros. This probably has more to do with how analysts modeled the timing of effects of Medicare payment adjustments, which also explains why Fresenius Medical Care reiterated 2026 guidance, according to JPM. The company's outlook points to an earnings contraction in the mid-teens to mid-20s percentage range in the second half, the analysts say.
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