The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1249 ET - Proofpoint CEO Sumit Dhawan suggests the company will consider re-entering public markets following its roughly $6.3 billion acquisition of Varonis Systems. "We think that the combined company is going to be attractive to public investors, and as we close this transaction, we're going to assess it," Dhawan says on CNBC, adding that his current focus is closing the deal. Proofpoint itself was taken private by private-equity firm Thoma Bravo in 2021. (elias.schisgall@wsj.com)
1245 ET - Proofpoint's roughly $6.3 billion acquisition of cybersecurity firm Varonis Systems is a play to dominate the market for data security services, Proofpoint CEO Sumit Dhawan says on CNBC. "Data has become the next frontier of protection for cybersecurity," Dhawan says, adding that enterprises need data security in order to deploy AI safely. "Proofpoint and Varonis together become the largest cybersecurity player solving data security," he says. "None of the other providers were designed and built for protecting data, and Proofpoint and Varonis is." Varonis shares trade up 2.9% at $48.69 (elias.schisgall@wsj.com)
1235 ET - Shopify's tapping into strong growth and a growing recognition as an AI leader, according to RBC's Paul Treiber. In a report, the analyst points to U.S. Census data showing ecommerce sales rose 8.2% year-over-year in the two-month period of August-September. Moreover, Store Leads data shows Shopify's total merchant base grew 15% year-over-year in 3Q, while high-margin Shopify Plus merchants accelerated to 24%, its fastest growth rate since late 2021. Over the same period, he notes that rival ecommerce platforms saw active merchant counts fall 14% on average. He says the data suggest Shopify's growth momentum "remains robust," increasing the likelihood that 3Q results and 4Q guidance top consensus expectations. (adriano.marchese@wsj.com)
1135 ET - It's an open question as to which quantum computing company is positioned to lead a market expected to reach $10 billion in 2030, Morgan Stanley analysts write in a note. If fault-tolerant quantum computers become widely commercially adopted, that market could grow to $100 billion by 2040, they project. Still, everything hinges on technical execution and timing: each quantum company in Morgan Stanley's coverage has a milestone set for 2027, with fault-tolerant systems expected in 2029 or 2030 per company roadmaps. "Today's revenue is too small to show which businesses will succeed," the analysts write. "The investment question is which companies are most likely to reach fault tolerance first." (elias.schisgall@wsj.com)
1132 ET - Quantinuum is a standout among pure-play quantum computing companies, Morgan Stanley analysts write in a note, upgrading the stock to overweight. The analysts consider the progress of four pure-play quantum stocks in their coverage - Quantinuum. Xanadu, Infleqtion, and IonQ - and find that Quantinuum seems to be furthest along its roadmap. "Quantinuum stands out on technology and execution: it is furthest along among the pure plays and has the strongest execution record, yet the market assigns it the lowest multiple of our 2030 revenue in the group," the analysts write. IonQ comes in second, while Infleqtion and Xanadu are at earlier stages, the analysts write. (elias.schisgall@wsj.com)
1121 ET - London's FTSE 100 is on pace to notch its best week since April as the tech-light sector benefits from a rotation away from artificial-intelligence stocks. The index is up 3.1% since Monday, its best weekly return since the week ending April 3. "Strong demand for defensive healthcare, defense, and personal goods counters insulated the FTSE 100 from a global technology selloff," Tickmill Group's Patrick Munnelly writes. Lower yields on U.K. government bonds also supported the index, the strategist notes. Defense and healthcare stocks have performed strongly. Shares in Babcock Group and BAE Systems are up 5.5% and 6.7%, respectively, while AstraZeneca rises 4.1%. (josephmichael.stonor@wsj.com)
1022 ET - AstraZeneca's new treatment for rare disease hypophosphatasia seems on track to replace and expand its existing $2 billion Strensiq franchise, and regulatory risk surrounding its launch looks surmountable given the unmet need, Berenberg analysts say in a research note. The U.K. drugmaker's new HPP medicine, efzimfotase alfa, offers a superior profile compared with Strensiq, the analysts say. Berenberg lifts its estimate for efzimfotase peak sales to $4.2 billion from $3 billion, assuming significant use in both pediatric patients and adults for whom the disease showed its first symptoms during childhood. The latter group makes up the bulk of HPP patients, the analysts add. Shares fall 1.6%. (adria.calatayud@wsj.com)
1005 ET - Publicis Groupe's growth trajectory seems largely priced in, giving shares in the French advertising company little room to go higher, AlphaValue's Helene Coumes says in a research note. The company continues to deliver solid organic growth quarter after quarter, but its share price has outperformed the media sector this year, the analyst says. AlphaValue lifts its target price on Publicis to 108 euros from 101 euros. Shares trade 0.4% higher at 104.20 euros, having climbed 17% since the start of the year against a 2.5% rise in the Stoxx Europe 600 Media index. (adria.calatayud@wsj.com)
0958 ET - Publicis Groupe's confidence suggests the French advertising company could deliver full-year organic net revenue growth at least at the top of its guidance range of 4.5% to 5%, Berenberg analysts say in a research note. The fourth quarter will be the swing factor for Publicis, but executives sounded even more confident than usual when they gave a third-quarter update this week, the analysts say. "With the industry down to three global players, clients now choose on capabilities rather than price, and Publicis stands out with both high retention and strong order momentum," they add. Berenberg raises its target price on Publicis to 123 euros from 119 euros. Shares rise 0.5% to 104.30 euros. (adria.calatayud@wsj.com)
0930 ET - Saudi Arabia recorded $1.5 billion in net foreign equity selling during the third quarter, reversing net purchases of the same amount in the previous quarter, Kamco Invest says. The kingdom accounted for the largest foreign outflow among Gulf stock markets, with overseas investors selling throughout all three months. Saudi investors, however, bought a net 5.6 billion riyals ($1.49 billion) in shares, reversing net selling of 5.8 billion riyals in the second quarter. Institutional investors accounted for 5.9 billion riyals in net purchases, while individual investors remained net sellers. Foreign net purchases in the first nine months of 2026 fell 61% from a year earlier. (farhan.rafid@wsj.com)
0930 ET - Qatar was the only Gulf stock market to attract net foreign investment during the third quarter, recording $10.9 million in net purchases as overseas investors sold shares across the rest of the region, Kamco Invest says. Foreign investors returned to buying Qatari equities in August and September after selling in July, while Saudi Arabia, Dubai and Kuwait experienced net foreign selling in all three months. Across Gulf markets, foreign investors sold a net $2.3 billion during the quarter, the largest outflow in Kamco's records dating back to 2019. Qatar's trading volume nevertheless fell 18.2% from the previous quarter. (farhan.rafid@wsj.com)
0857 ET - Wise Group is in a position to structurally gain market share in cross-border payments, BofA Securities analysts write. The fintech company's second quarter net revenue was 1.6% ahead of consensus expectations, due to card-revenue growth and higher interest income, offsetting a 2% miss on volumes, the analysts say. The company factored recent U.S. and EU interest rate increases into its new guidance, but not any future potential raises, BofA notes. As a result of higher rates, Wise now sees net revenue growth between 17.5% and 20% at constant currency for the year to March 2027, compared with the middle of the 15% to 20% target range previously. Shares are down 0.5%.
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