The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0734 GMT - Pop Mart International still has sound medium-term potential, given its strengthening intellectual-property portfolio, says DBS Group Research in commentary. The company's healthier operations is evident in its IP portfolio, the analysts say, citing a lower proportion of revenue from the Monsters collection--which includes Labubu--even as six IPs' 1H sales exceeded 1 billion yuan each. The board's 2 billion yuan-5 billion yuan share buyback program over the next six months also signals conviction in long-term value creation, they say. Still, DBS cuts its 2026-2027 earnings per share estimates by 12%-17% to factor in the 1H earnings. DBS lowers its target price to 195.00 Hong Kong dollars from HK$247.00 but maintains a buy rating. Shares decline 3.2% to HK$148.80. (megan.cheah@wsj.com)
0725 GMT - European indexes largely rise at market open. Banking is the leading sector while healthcare drags, as the Europe-wide Stoxx 600 adds 0.1%. Miners lead London's FTSE 100, which edges 0.05% higher, with Fresnillo and Antofagasta gaining 3.4% and 3.3% on higher gold and silver prices. Germany's DAX and the French CAC 40 trade flat. Italy's FTSE MIB adds 0.3%, led by AI-linked STMicroelectronics and Prysmian--up 1.3% and 1.1%, respectively. Banca MPS rises 0.5% after moving to buy two peers. Spain's IBEX 35 is 0.5% higher. The Dutch AEX adds 0.2% as semiconductor stocks strengthen after weakening over the week so far, with ASML rising 1.2%. (josephmichael.stonor@wsj.com)
0712 GMT - AIA's underlying business quality remains intact after its 1H results, says DBS Group Research's Ken Shih in a note. The Hong Kong insurer's Chinese mainland visitor business growth softened on a high base, the analyst notes. AIA management says policies for offshore capital controls and taxation have been in place for a long time but the latter has largely not been a concern for the Chinese mainland visitor segment, he notes. "Overall, the structural demand for currency diversification and superior medical coverage remains intact," he adds. DBS cuts its 2026-2027 new business value projections by 5% to partly reflect high base effects, leading to a lower target price of 106.00 Hong Kong dollars from HK$108.00. DBS maintains its buy rating. Shares rise 2.75% to HK$74.75. (megan.cheah@wsj.com)
0653 GMT - Bitcoin rises around 4% to a 12-week high of $75,681, according to LSEG data. The cryptocurrency is boosted by a combination of regulatory momentum, institutional spot demand, lower-yield expectations and forced short covering, Zaye Capital Markets' Naeem Aslam says in a note. President Trump has urged lawmakers to pass a "fair version" of the Clarity Act, a proposed U.S. federal bill aimed to create a clear legal framework for crypto currencies and digital assets. "That materially changes the regulatory risk premium surrounding bitcoin because clearer rules can make banks, asset managers and corporations more comfortable allocating capital to the sector, while the possibility of additional sovereign holdings strengthens bitcoin's scarcity narrative," Aslam says. (emese.bartha@wsj.com)
0639 GMT - HelloFresh needs to convince the market that it has found a way to reduce revenue declines and eventually return to growth, Deutsche Bank's Nizla Naizer writes in a note. The German meal-kit company's second half of the year will be crucial to gain market confidence, Naizer says. "While the improving transparency on revenue cohorts and their behavior is welcome, the question now is whether the product investments have been enough to get the new customers back into growth territory." The German bank expects constant currency revenue declines of 5% for the second half. Shares closed at 2.87 euros on Thursday.(najat.kantouar@wsj.com)
0631 GMT - Seasonal events and content updates should support NetEase's games momentum, Daiwa analyst John Choi says in a note. Industry watcher Sensor Tower's grossing data has shown a year-over-year growth uptick since June, reflecting solid momentum from evergreen titles such as "Fantasy Westward Journey" and "Eggy Party," he says. This solid momentum should sustain into 3Q, says the analyst, who expects 3Q online games revenue to grow 9% from a year earlier to 24.9 billion yuan. As games gross margin hit 76.1% in 2Q, the bank sees limited room for increases going forward. Daiwa raises NetEase's target price to 260.00 Hong Kong dollars from HK$257.00. Shares are last at HK$199.90. (sherry.qin@wsj.com)
0628 GMT - UltraGreen.ai's growth outlook is clouded by new competition, DBS Group Research's Amanda Tan says in a research report. Zydus Lifesciences can launch its generic indocyanine green product following approval by the U.S. Food and Drug Administration, the analyst notes. Provepharm has already launched its 'Zyogreen' product in the U.K. and is targeting further geographic expansion in the U.S., the analyst notes. The entry of two rivals suggests barriers to entry into indocyanine green products which UltraGreen.ai manufactures are less prohibitive than previously assumed. DBS downgrades the stock's rating to hold from buy and lowers its target price to $0.80 from $1.95. Shares are 7.4% lower at $0.69. (ronnie.harui@wsj.com)
0614 GMT - Alibaba is likely to keep up its artificial-intelligence investment in the long term, according to Citi analysts in a research note. Citi believes Alibaba's management has "confidently articulated" its decision to aggressively increase investment to capture the significant demand in AI. Management views it as a controlled cash-flow trade-off although the asset-heavy AI investment is front-loaded and will weigh on short-term profitability, they say. Citi trims the target price for its ADRs to $189.00 from $190.00. The bank keeps its buy rating on the stock and views Alibaba as a prominent AI play in China. Its ADRs last traded at $130.53. (tracy.qu@wsj.com)
0558 GMT - Bangchak Corp.'s refinery and non-refinery businesses are performing stronger than expected, ttb wealth securities' Yupapan Polpornprasert says in a research report. The Singapore gross refining margin, used as a benchmark price reference by the Thai petroleum and energy conglomerate, has been higher than expected, the analyst notes. Uncertainty around the Strait of Hormuz and ongoing refinery disruptions in Russia continue to constrain global refined product supply. The refinery market outlook is also bright with limited new capacity additions over the next few years, supporting a strong gross refining margin. The brokerage raises the stock's target price to 60.00 baht from 41.00 baht with unchanged buy rating. Shares are 5.8% higher at 50.25 baht. (ronnie.harui@wsj.com)
0553 GMT - China Resources Beer's baijiu business is likely to only recover in the longer term, after the segment's 1H revenue missed estimates, say China Galaxy International analysts in a note. The brewer said in an analyst briefing it is avoiding direct-to-consumer pushes for baijiu--a Chinese distilled liquor--to ease elevated channel inventory and distributor liquidity constraints, they note. The company is instead introducing a third-party custody or consignment model for its new baijiu stock-keeping units, where it will absorb inventory fluctuation to rebuild channel confidence. CGI cuts its 2026-2028 earnings-per-share estimates by 3.7%-3.8% on a weaker baijiu business and higher-than-expected cost pressure. It trims its target price to 31.30 Hong Kong dollars from HK$33.50. Shares rise 2.3% to HK$21.02. (megan.cheah@wsj.com)
0542 GMT - International Consolidated Airlines trades at a discount to European peers and its valuation doesn't reflect its leading margin and return profile, RBC Capital Markets analyst Ruairi Cullinane writes. The analyst forecasts an 18% EPS compound annual growth rate over three years, margin recovery and share buybacks. Still, Cullinane says long-haul capacity is set to remain relatively constrained on some of the British Airways owner's home markets into the winter season, and likely beyond. "The order books of European airlines point to significantly more growth in short and medium-haul than long-haul, in the medium term," he writes. RBC raises its target price on the stock to 500 pence, from 465 pence and holds its outperform rating. Shares closed in London at 418.70 pence and are up 1.1% over the year to date. (ian.walker@wsj.com)
0519 GMT - Recovery of consumer spending at Central Retail Corp. seems stronger than expected, UOB Kay Hian's Tanapon Cholkadidamrongkul says in a note. Its July same-store sales growth turned positive, supported by the FIFA World Cup campaign, effective marketing initiatives and improved product merchandising, the analyst says. The Thailand multi-format retailer is focusing on generating higher revenue from its existing asset base and larger customer base, while slowing store expansion. Its acquisition of Aeon (Thailand), including 30 Max Valu stores, creates upside to the company's earnings. The brokerage raises the stock's target price to 33.00 baht from 31.00 baht with unchanged buy rating. Shares are 1.8% lower at 27.25 baht.
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