The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0547 GMT - Suzuken's business growth prospects appear good, Nomura's Kyoichiro Shigemura says in a research report. Drivers include expected stable margins and increase in exclusive distribution contracts for specialty pharmaceuticals in prescription pharmaceuticals wholesaling operations, the analyst says. Others are expansion in digital services and linkage between manufacturer distribution and wholesale distribution. Nomura likes the Japanese pharmaceutical wholesaler's approach to anticipating investor expectations by undertaking reform in wholesaling business, formulating strategies to boost return on equity, and enhancing shareholder returns. The brokerage upgrades the stock's rating to buy from neutral and raises its target price to 3,550 yen from 2,785 yen. Shares are 2.8% higher at 2,778.5 yen. (ronnie.harui@wsj.com)
0541 GMT - Lotte Chemical could post a wider-than-expected 3Q operating loss, Hana Securities' Yoon Jae-sung says. The lagged effects of lower product prices and the won's appreciation likely weighed on the South Korean company's earnings in the July-September quarter, the analyst says. Yoon expects Lotte to post an operating loss of 223.4 billion won in 3Q, wider than the consensus estimate of a 163.2 billion won loss. The loss could narrow in 4Q as product prices rise, but the earnings improvement could be limited by the won's appreciation, he adds. Hana downgrades the stock to neutral from buy and lowers its target price to 60,000 won from 80,000 won. Shares are 4.2% higher at 56,900 won. (kwanwoo.jun@wsj.com)
0533 GMT - Southeast Asian plantation sector prospects are likely to remain subdued in the absence of near-term catalysts for crude palm oil prices amid concerns over transboundary haze, says Maybank analyst Ong Chee Ting in a note. Malaysian planters could be preferred amid a lack of details about Indonesia's new agrarian reform law, but elevated palm oil inventories in Malaysia may limit price gains, he says. Also, while El Nino could reduce output in 2027, its impact may be offset by higher operating costs and taxes, especially for Indonesian producers, he reckons. Maybank maintains a neutral rating on the Southeast Asian plantation sector, and pegs SD Guthrie, Sarawak Oil Palms and Genting Plantations as top buys. (yingxian.wong@wsj.com)
0518 GMT - CP All's sharp fall from this year's peak share price looks overdone, ttb wealth securities' Pattadol Bunnak says in a research report. Bad news about subsidiary CP Axtra's weak earnings has been reflected in CP All's share price, the analyst says. The Thai conglomerate's estimated 11x 2027 price-to-earnings ratio also appears to be a bargain, partly given its solid 7-Eleven business, the analyst adds. However, the brokerage cuts its earnings forecasts for CP All by 5% for 2026, 4% for 2027, and 5% for 2028 to reflect CP Axtra's weak earnings. It lowers CP All's share target price to 60.00 baht from 62.00 baht while maintaining the buy rating. Shares are unchanged at 43.50 baht. (ronnie.harui@wsj.com)
0509 GMT - Press Metal Aluminium's recent sell-off may offer an attractive opportunity to accumulate shares, as its long-term outlook remains intact despite near-term cost pressures, RHB IB analyst Iftaar Hakim Rusli says in a note. However, further share-price declines remain possible if aluminum prices weaken, he says. Press Metal's 80%-owned Indonesian alumina refinery is expected to begin commissioning in 2Q 2027, with its expansion potentially bringing alumina self-sufficiency to nearly 100% and boosting smelting margins, he adds. The analyst cuts Press Metal's 2026-2028 earnings estimates by 4%-5% to factor in higher carbon anode costs. RHB cuts Press Metal's target price to 9.30 ringgit from 9.80 ringgit, while maintaining a buy rating on the stock. Shares are 2.6% higher at 6.67 ringgit.
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