The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0858 GMT - Akamai Technologies' $11.6 billion multiyear agreement with Anthropic demonstrates the advantage of the cloud computing company's software, J.P. Morgan analysts write. The deal includes the potential to add another $9 billion in revenue for Akamai, an option the analysts expect to be activated. Akamai's software means data can travel quickly and with minimal lag, the analysts say. Because of Akamai's efficiency, the company can generate an average $22 million per megawatt of power--a level that beats out compute deals with other cloud companies. The analysts raise their price target for Akamai shares to $167. The stock surges 21.5% premarket to $133.90. (josephmichael.stonor@wsj.com)
0857 GMT - United Utilities should outperform over the coming years after holding its guidance for fiscal 2027, J.P. Morgan analysts Pavan Mahbubani and Samanvitha Theegela write. The U.K. water company is performing in line with expectations and is on track to deliver 2 billion pounds of investment next year. The analysts see a backdrop of "attractive, inflation-linked regulation" to outperform in the medium term, but say fiscal 2026 lacks positive catalysts to drive a re-rating in the share price. JPM holds a neutral rating on the stock and a 14.50 pound price target. Shares are 0.7% higher at 14.08 pounds and 18% higher over the year to date. (joseph.wilkins@wsj.com)
0832 GMT - AB InBev has notable growth potential ahead even if trading headwinds remain in the short term, Citi's Simon Hales and Sunny Wadhwani write in a note to clients. The Bud Light brewer at a capital-markets event this week shifted its medium-term growth goal to 5%-9% annual increases in EBIT, from a previous 4%-8% Ebitda target. The group's business-to-business platform BEES is among the company's growth drivers, alongside its megabrands and an increased balance toward nonbeer categories like canned cocktails, Hales and Wadhwani say. Challenges this quarter might keep a lid on short-term stock performance, but "we leave the CMD more confident" in the sustainability and deliverability of AB's growth ambitions, the analysts say. (joshua.kirby@wsj.com; @joshualeokirby)
0804 GMT - Food Empire could gain market share in the Russian coffee sector after one of its peer's business in the country was disrupted, say UOB Kay Hian analysts in a note. Russia unexpectedly seized Nestle's local operations last week, The Wall Street Journal reported. Food Empire, a Singapore-listed instant coffee maker that makes around 30% of its revenue from Russia, said its operations in the country are unaffected but its shares declined around 10% on Monday, the UOB KH analysts say. The share-price correction appears overdone, as the market hasn't priced in Food Empire's potential to gain market share after Nestle's operations were disrupted, they add. UOB KH retains its buy rating and 3.49 Singapore dollar target price. Shares fall 1.0% to S$1.96. (megan.cheah@wsj.com)
0745 GMT - London's miners gain after oil prices ease. Brent crude and WTI fall as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Miners are some of the world's largest consumers of diesel and higher prices eat into margins. High oil prices also raise the prospect of interest rate rises to combat inflation. This would hurt investment and consumer sentiment, and drag on demand for mined minerals and metals. With sentiment improved, Glencore rises 2% while Anglo American gains 1.3%. Antofagasta is 0.9% higher. Precious metal miners Fresnillo, Hochschild Mining and Endeavour Mining all gain over 1.2%. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate falls 1.9% to $92.85 a barrel.(adam.whittaker@wsj.com)
0736 GMT - European energy stocks open lower as oil prices slip. Brent crude and WTI have fallen as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate fall 1.9% to $92.85 a barrel. In London, BP falls 2% and Shell drops 0.4%. France's TotalEnergies is 0.8% lower and Spain's Repsol is down 0.6%. Italy's Eni falls 0.2%. Norway's Equinor is down 1.3%. (adam.whittaker@wsj.com)
0731 GMT - European stock indexes open in the green, boosted by a rally in AI-linked stocks. Banks and mining stocks also gain as the Stoxx 600 rises 0.7%. The semiconductor-heavy AEX adds 0.6% in Amsterdam, with ASML jumping 2.3%. Peers ASM International and BE Semiconductor add 2% and 1.4%, respectively. In Paris, the CAC 40 gains 0.4%, boosted by a 3.1% jump for chip maker STMicroelectronics. Societe Generale gains 2.4%. Metals miners lift London's FTSE 100 up 0.5%, while the German DAX rises 0.7%. Deutsche Bank gains 2.2%, while data center energy provider Siemens Energy rises 2.1%. Banks lift Italian and Spanish indexes, with the FTSE MIB up 1.1% and the Ibex 35 gaining 0.8%. (josephmichael.stonor@wsj.com)
0730 GMT - CSE Global's new contracts likely have stronger margins than those from its hyperscaler-related orders, CGS International's Tan Jie Hui and Lim Siew Khee sayin a note. The Singapore technology company announced two electrification order wins totaling US$150 million, spanning liquefied-natural-gas and data-center power infrastructure, the analysts say. They estimate the contracts' blended Ebitda margins at around 10%, as they require greater customization than the hyperscaler ones. These order wins could also help CSE Global deepen key relationships in U.S. LNG and hyperscale power infrastructure sectors beyond its current customer Amazon Web Services, they add. CGSI retains its add rating and target price of 1.95 Singapore dollars. Shares rise 0.8% to S$1.27. (megan.cheah@wsj.com)
0726 GMT - Oil prices tick lower as traders weigh signs of diplomatic progress to end the Middle East war against renewed Houthi attacks against Saudi Arabia. In early European trading, front-month Brent crude is down 0.7% to $105.90 a barrel, while WTI futures fall 1.5% to $93.28 a barrel. An attempted Houthi strike on Thursday revived concerns over potential disruptions to Saudi energy infrastructure and regional supply routes. However, gains were limited by reports that the U.S. and Iran are exploring a phased framework to reopen the Strait of Hormuz. "Optimism over a potential U.S.-Iran truce encouraged profit-taking," analysts at brokerage Kotak Neo say. "Near-term direction will depend on the progress of negotiations, further Houthi activity and upcoming inventory data." (giulia.petroni@wsj.com)
0658 GMT - Var Energi's deal to buy BlueNord strengthens the equity story well beyond the announced synergies, Citi analyst Tianhong Bi writes. Var Energi announced a deal in July to buy Oslo-listed peer BlueNord in a cash and stock deal valued at around $1.3 billion. Citi says Var shares have undergone a significant rerating since this time last year, but the bank still sees further upside as BlueNord extends cash-flow potential and strengthens confidence in the new 450,000 barrels of oil equivalent per day production ambition. "The combination broadens the resource base, reduces reliance on the higher-decline Norwegian portfolio and creates a 2nd infrastructure-led development engine in Denmark." Citi raises its target price to 57 Norwegian kroner from 48 kroner and keeps buy rating. Shares closed at 53.28 kroner. (dominic.chopping@wsj.com)
0647 GMT - Bumitama Agri's stock has scope for further valuation rerating if the palm oil producer is able to deliver consistent earnings growth, says DBS Group Research's William Simadiputra in a note. Crude palm oil prices are likely to remain above US$1,000 a metric ton through 2027, boosted by El Nino-related supply risks and elevated crude oil prices, he says. The analyst expects the company to have a solid performance in 2026, citing its ability to preserve margins despite external fruit purchases and rising fertilizer prices. DBS raises the stock's target price to 3.00 Singapore dollars from S$2.30 after rolling forward its valuation and maintains a buy rating. Shares are down 1.8% at S$2.16. (megan.cheah@wsj.com)
0547 GMT - Nordic markets are seen opening slightly higher with IG calling the OMXS30 up 0.4% at around 3284. Brent crude hit $108 yesterday, but has since fallen by around $2 following reports that the U.S. and Iran are discussing a deal to reopen the Strait of Hormuz, SEB macro strategist Gustav Helgesson writes. The global rise in bond yields continues, particularly in the U.S., where the 10-year yield touched 5.2% yesterday and the 30-year reached 5.5%, he adds. "Despite an unusually warm reception, there were few new concrete agreements during China's first state visit to the U.S. in ten years." U.S. and European equity futures point to a positive opening. OMXS30 closed at 3271.26, OMXN40 at 2614.61, and OBX at 2012.06.
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