The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0738 GMT - Universal Music Group continues to benefit from higher minimum per-subscriber payments, Citi analysts write in a note. The world's largest music company shows sustainable growth driven by increases in minimum per-subscriber payments from online music streaming platforms, they say. The group also has growth potential related to AI-generated playlists, given the potential launch of this service by Spotify in the second half of the year or early 2027, they add. The U.S. bank resumes its coverage with a buy rating and a target price of 20 euros on the stock. Shares are up 0.9% at 15.08 euros. (najat.kantouar@wsj.com)
0739 GMT - Swissquote Group Holding's target for 2028 looks ambitious due to weakness in cryptocurrency trading, Berenberg's Christoph Greulich says. The Swiss financial services firm reported a 66% fall in net crypto assets income in the first half, which offset progress in other income streams, Berenberg notes. The firm is also exposed to crypto price changes as well as customers' activity levels. Swissquote lowered its 2026 guidance but confirmed its forecast to reach pretax profit of 500 million Swiss francs in 2028. "We continue to view this goal as ambitious and forecast 2028 pretax profit to come in 8% below the target," Berenberg says. The shares closed at 37.54 francs on Friday and are down 25% year to date. (michael.hennessey@wsj.com)
0728 GMT - European markets started the new week mostly higher after most ended the previous week lower, except for Germany's DAX, which closed at a new record. The Europe-wide Stoxx 600 index was up 0.2% and boosted by technology and pharma stocks. SpaceX supplier STMicroelectronics was up 3%, while Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International were up 2.35% and 2.7%, respectively. Dutch pharmaceutical company Argenx was leading the index risers--up around 7.7%--after reporting positive trial results. Germany's DAX and London's FTSE 100 indexes were up 0.02% and 0.3%, respectively, while France's CAC 40 was down 0.1%. (ian.walker@wsj.com)
0728 GMT - Citic Telecom's mobile services and international telecommunications services are likely to remain key growth drivers, says DBS Group Research's Tsz Wang Tam in a note. The company's 1H earnings were largely stable, buoyed by its resilient mobile and international segments, the analyst says. The company is also budgeting a higher capital expenditure of 145 million Hong Kong dollars to support its artificial-intelligence infrastructure investments, he adds. The completion of its Hutchison Telecom Macau acquisition is likely to strengthen Citic Telecom's market leadership in Macau. DBS projects 4.3% and 5.2% earnings growth for 2026 and 2027, respectively. The bank retains its buy rating and HK$3.30 target price. The stock is up 3.3% at HK$2.515. (megan.cheah@wsj.com)
0650 GMT - Liquid cooling penetration among AI chips is projected to approach 60% by 2027, as next-generation AI hardware continues to push power and thermal requirements higher, according to research firm TrendForce. The firm says adoption is expected to rise from approximately 33% in 2025 to 53% in 2026, driven by continued investment in AI infrastructure and the rollout of new high-performance AI chips from Nvidia, AMD and Google. AMD is expanding its AI platform strategy with the Helios rack-scale solution, which is expected to enter large-scale shipments in 2027, while the next-generation MI500 platform is being developed to compete with Nvidia's Rubin Ultra, TrendForce says. (jie.yang@wsj.com)
0648 GMT - Questions remain over Rheinmetall's midterm targets, analysts at J.P. Morgan caution. The German defense group trimmed its sales guidance for the year this month after the German government cancelled a major frigate order. Along with lower planned capex, sales over the longer term are likely to be lower than expected, according to JPM's calculations. "We remain bullish on European defense but see more upside in several other names," the bank says. (joshua.kirby@wsj.com' @joshualeokirby)
0644 GMT - HelloFresh's ability to achieve its guidance will depend on its marketing performance during the back-to-school season, Berenberg analyst Trion Reid writes in a note. The German meal-kit company maintained its full-year outlook when it reported its first-half results. "The poor conversion of new customers in the first half of 2026 means that we expect a weak organic revenue performance in third quarter 2026," he says. The company needs to deliver a material improvement in the fourth quarter to reach the low end of its guidance for a 3% to 6% organic revenue decline, but this seems unlikely unless the conversion rate for new customers improves from September, he adds. Shares closed at 3.15 euros on Friday. (najat.kantouar@wsj.com)
0642 GMT - UMS Integration could benefit from the artificial-intelligence capital expenditure cycle, as its new and existing customers have robust demand for next 2-3 years, Maybank Research's Jarick Seet says in a research report. In 2025, the high-precision components manufacturer's new customer contributed 35 million Singapore dollars of revenue, says the analyst who expects this contribution to double in 2026. This is expected to persist into 2H as major clients have projected strong demand in 2026 and 2027. Maybank Research lifts its 2026 and 2027 earnings forecasts for UMS Integration by 7.6% and 6.8%, respectively. It raises the stock's target price to S$3.43 from S$3.21 with unchanged buy rating. Shares are 2.9% higher at S$2.80. (ronnie.harui@wsj.com)
0637 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.4% at around 3288. The S&P 500 and Nasdaq closed marginally lower on Friday, but the big picture remains that stock markets continue to impress, SEB strategist Dana Malas writes. Warning signs surrounding the U.S. consumer--declining confidence and weaker retail sales--are so far weighing only slightly. They are offset by stable and solid interim reports, a sustained technology and investment cycle and good productivity growth, Malas says. Meanwhile, a solution to the Hormuz crisis "appears increasingly complicated as the White House desperately tries to find ways out of the war." OMXS30 closed at 3274.52, OMXN40 at 2711.69 and OBX at 2014.28. (dominic.chopping@wsj.com)
0622 GMT - BMW has suggested that its September capital markets day will highlight cost reductions and a new way of working with suppliers, which should improve profitability, Citi analysts write. Given very low 2026 EBIT margins, Citi expects BMW will set medium-term EBIT margin and free cash flow targets well above current levels. However, structural changes such as the China market and tariffs suggest these may be 400 basis points lower than previous "normal" BMW levels, Citi adds. BMW has also highlighted that it believed its core industrial strategy is correct and would not be changed, but Citi argues the industry environment has changed. "Should BMW's strategy not evolve to reflect this?" it adds. Citi rates BMW at neutral with a 64-euro target price. Shares closed at 59.40 euros. (dominic.chopping@wsj.com)
0621 GMT - CK Asset's robust balance sheet appears key to the Hong Kong-listed property developer's investment appeal, say DBS Group Research analysts in a note. The company moved into a net cash position following the disposals of UK Power Networks and Eversholt UK Rail, they note. The company would have more than HK$100 billion of debt headroom for acquisitions, assuming gearing increases to 20%, they say. Its balance sheet therefore provides CK Asset substantial financial flexibility to pursue deals when attractive opportunities emerge, they note. DBS raises its target price to 55.24 Hong Kong dollars from HK$52.86 and maintains its buy rating. Shares rise 2.3% to HK$46.02. (megan.cheah@wsj.com)
0605 GMT - Citizen Watch's earnings are likely to remain high after strong fiscal first-quarter results, Nomura's Yu Okazaki says in a research report. Management raised its annual operating profit guidance to 40.5 billion yen from Y34.5 billion, but Nomura sees the potential for stronger earnings growth, as the watch market remains buoyant, mainly in North America. For its watches segment, the Japanese company has been ramping up promotional activity in an effort to appeal to Gen Zs and millennials, the analyst notes. Nomura raises the stock's target price to Y3,000 from Y2,600, with its neutral rating unchanged. Shares are 0.1% higher at Y2,755.
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