The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0327 GMT - Perenti's earnings quality continues to improve amid an ongoing transition in its project portfolio and focus on lower-risk jurisdictions, says Macquarie. The ASX-listed mining-services company concluded projects in Burkina Faso, Senegal and Botswana at the end of FY25 and during 1H26. At the same time, it is expanding in North America, the bank says. "With multiple contracts ramping up through CY26 and a healthy tender pipeline for new and existing projects, we see growth accelerating," says Macquarie. The bank reiterates an outperform rating on Perenti and raises its target to A$2.85/share from A$2.70/share. The stock is down 1.7% at A$2.35. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0307 GMT - Crude palm oil prices are expected to moderate in 2H, mainly due to seasonally higher production and elevated Malaysian inventories, TA Securities analyst Angeline Chin says in a note. However, prices are expected to remain above 4,000 ringgit a ton, supported by Indonesia's biodiesel program, firmer soybean oil prices and stronger U.S. biofuel feedstock demand, she says. Festive restocking by key importing countries in late 3Q could help absorb part of the seasonal supply increase, while a strengthening El Nino remains an upside risk, although its impact on palm oil production is likely to emerge with a lag, she adds. TA Securities maintains an overweight rating on Malaysian plantation sector, pegging SD Guthrie, Kuala Lumpur Kepong, IOI, United Malacca and Kim Loong Resources at buy. (yingxian.wong@wsj.com)
0252 GMT - Venture Corp.'s 1H earnings show encouraging signs of recovery, RHB Research's Alfie Yeo says in a research report. Its Portfolio B, which includes the test and instrumentation business, is helping to boost revenue growth momentum, the analyst says. This business is performing well, partly thanks to stronger demand and growth of hyperscaler data centers. RHB also expects a recovery via upcoming new product launches and a ramp-up in manufacturing in the company's lifestyle consumer business. However, RHB lowers its 2026-2028 earnings forecasts for Venture Corp. by 5% to reflect lower margin assumptions. It trims the stock's target price to 20.78 Singapore dollars from S$21.80, with an unchanged buy rating. Shares are 0.5% lower at S$17.11. (ronnie.harui@wsj.com)
0217 GMT - Axiata is likely shifting its asset monetization stance towards optimizing value over a longer period, which could delay the divestment of its infrastructure assets, Maybank IB analyst Tan Chi Wei says in a note. The company had previously targeted the sale of its edotco and Linknet in 2026. Tan notes company's earnings recovery and eventual balance-sheet improvement are potential re-rating drivers, with its dividend commitment seen as sustainable at an assumed 0.11 ringgit per share in 2026, with an implied yield of about 5.5%. Maybank maintains a buy rating on Axiata and keeps target price at 2.90 ringgit. Shares are 0.5% higher at 1.92 ringgit. (yingxian.wong@wsj.com)
0155 GMT - Treasury Wine Estates should keep hold of a smaller U.S. portfolio rather than completely quit the region, CLSA analysts reckon. Maintaining their outperform rating on the stock, the analysts wonder whether the Australian vinter's U.S. moves point to an exit or a repositioning. They conclude that pruned production and inventory offloading sets up Treasury Wine's troubled U.S. operation for improved profitability should management choose to keep hold of it. They tell clients that the U.S. business, which remains subject to a strategic review, is now valued at about 2.3 billion Australian dollars. CLSA holds its target price at A$6.50. Shares are down 0.8% at A$5.615. (stuart.condie@wsj.com)
0144 GMT - Malaysia's semiconductor sector could witness an uneven recovery amid a cautiously optimistic outlook despite robust global semiconductor sales growth driven by strong AI demand, TA Securities analyst Chan Mun Chun says in a note. Growth is expected to be led by companies exposed to AI and data-center infrastructure. Players with significant exposure to traditional end markets such as computers and smartphones may face a more challenging environment due to rising memory costs, he reckons. Geopolitical tensions and potential ringgit appreciation are also key risks to the sector's growth outlook, he adds. TA Securities maintains a neutral rating on Malaysia's semiconductor sector. It pegs Dagang NeXchange as its top pick, as its semiconductor unit, SilTerra, is seen benefiting from strong silicon-photonics orders amid growing AI and data-center demand.(yingxian.wong@wsj.com)
0137 GMT - Malaysia's technology sector could see several near-term rerating catalysts in 2H, including an earnings upgrade cycle and potential inclusion of technology stocks if the KLCI expands to 50 constituents from 30, CIMB Securities analyst Mohd Shanaz Noor Azam says in a note. Ringgit depreciation against the dollar and election-related developments could also support investor sentiment and further P/E multiple expansion, he says. Artificial-intelligence infrastructure demand remains a key growth driver, with Vitrox, Malaysian Pacific Industries, Inari Amertron and Nationgate seen as beneficiaries. The Wolfspeed-Liteon partnership also reinforces AI-driven silicon carbide adoption, benefiting Malaysian power-management players such as Malaysian Pacific Industries, he adds. He prefers companies converting AI demand into orders and recurring revenue. CIMB maintains an overweight rating on Malaysia's tech sector. (yingxian.wong@wsj.com)
0129 GMT - ResMed's bull at Macquarie thinks the breathing-tech provider's five-year outlook remains intact despite its June-quarter gross margin missing expectations. The dual-listed CPAP maker's 4Q 62.3% gross margin was 36 basis points short of the investment bank's expectations, and 46 basis points softer than consensus. However, Macquarie's analysts reminds clients that ResMed continues to expect a double-digit basis-point improvement to gross margin through 2030. Macquarie expects gross margin to widen to 62.9% by fiscal 2029, with EPS growth for the next three fiscal years of 9%, 6% and 10%, respectively. Macquarie raises its target price on ResMed's ASX-listed stock by 0.4% to 46.80 Australian dollars, and maintains an outperform rating. Shares are up 3.4% at A$31.11. (stuart.condie@wsj.com)
0125 GMT - Coronado Global Resources posts a deeper-than-anticipated 1H loss due to higher net interest costs, lower-than-expected tax benefits, and an additional impairment related to its Logan mine sale, says Barrenjoey. Coronado's net loss of US$418 million compares with a consensus estimate of US$305 million. Revenue and Ebitda are in line with the bank's expectations, although Ebitda misses consensus, it says. The coal miner hasn't provided any commentary regarding 2026 volume and mining-cost guidance. Two Glencore off-take/prepayment agreements provide additional liquidity lever, it adds. Barrenjoey has a neutral rating and target of 30 Australian cents/share on the stock. Shares are down 13% at 16.5 Australian cents. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0112 GMT - CAR Group's strong profit outlook looks priced in to Macquarie analysts. With an unchanged neutral rating on the Australia-listed vehicle advertiser, Macquarie's analysts tell clients in a note that CAR is well-placed to report annual adjusted net profit growth of between 9% and 12% through fiscal 2029, on a constant-currency basis. However, they point out that the 11% growth reported for the last fiscal year was in line with consensus. The investment bank's view is that the stock is trading at 25 times earnings on a one-year forward basis, with its price-to-earnings-growth ratio at the midpoint of its recent range. Macquarie raises its target price 4.6% to 29.80 Australian dollars. Shares are down 3.1% at A$28.79. (stuart.condie@wsj.com)
0103 GMT - Crude palm oil prices could trade between 4,400 ringgit and 4,600 ringgit a ton in the near term, supported by rising geopolitical risks, strengthening El Nino conditions and higher biodiesel demand in Indonesia, says Ivy Ng Lee Fang of CIMB Securities. Stronger El Nino conditions could weigh on Southeast Asian yields with a lag, posing downside risks to supply from 2027 onwards, the analyst says. Disruptions in sunflower-oil exports from Russia and Ukraine could also boost palm oil substitution demand ahead of India's festival season. CIMB raises its CPO price forecasts for 2026 and 2027 by 50 ringgit a ton each to 4,450 ringgit and 4,550 ringgit a ton, respectively. It remains overweight on Malaysia's plantation sector, and pegs IOI, Kuala Lumpur Kepong and Hap Seng Plantations as its top picks. (yingxian.wong@wsj.com)
0052 GMT - Life360's bull at Citi sees a number of positives from its latest quarterly update despite the disappointing lack of an earnings guidance upgrade. Analyst Siraj Ahmed flags strong growth in paying subscribers, a pickup in international user growth, a better-than-expected Ebitda margin, and U.S. price rises linked to the location-app developer's launch of its pet tracker product. However, June-quarter advertising gross margin fell short of Ahmed's forecast. He tells clients in a note that Life360's unchanged Ebitda guidance means that its 3Q earnings could miss consensus by a distance. Citi has a last-published buy rating on Life360's U.S.-listed stock. Its ASX-listed stock is down 14% at 25.38 Australian dollars.
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