The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0941 GMT - MTU Aero Engines delivered strong free cash flow in the third quarter that gave it bandwidth to boost its annual cash conversion target, Jefferies analysts write in a note to clients. The German aircraft-engine manufacturer posted free cash flow of 172 million euros for the quarter, up from 67 million euros a year earlier. The figure is well above consensus of 109 million euros, analysts say. The company said strong free cash flow meant it was now projecting a cash conversion rate of 55% to 60% for the year, better than prior guidance of 50% to 60%. MTU shares trade 2.7% lower at 323.20 euros. (mauro.orru@wsj.com)
0939 GMT - Societe Generale's strong quarter extends the French bank's period of better-than-expected performance despite trading at a discount to European peers, UBS's Jason Napier and Nicolas O'Sullivan write. The bank reports operating income 10% higher than company consensus expectations. The bank has a "lengthening track record of better-than-expected delivery," UBS says. Societe Generale should deliver bigger moves than peers when the outlook for oil and European sovereign spreads changes, the analysts say. The bank's cost targets and distribution expectations should reduce downside risks in time, UBS adds. Shares are up 0.2%. (michael.hennessey@wsj.com)
0937 GMT - TotalEnergies posted solid but not standout results, Jefferies's Mark Wilson writes. Overall, the French energy major's third-quarter performance was largely in line with expectations, but market watchers were looking for a larger reduction in net debt, the analyst says. The analyst call with management later Thursday will likely focus on catalysts such as its project in Namibia, he says. Shares are up 0.4% to 83.99 euros. (adam.whittaker@wsj.com)
0928 GMT - Renault's full-year consensus EBIT expectations could move higher by a low-single-digit percentage, based on third-quarter sales trends, UBS analyst David Lesne writes. Sales in the quarter beat expectations slightly, and UBS says fourth-quarter implied sales growth sits at around 2%-3%. The company also confirmed guidance, as expected, with the CFO commenting that group EBIT margin is expected toward the bottom of the 5.3%-5.7% range, while consensus sits at 5.1%. "Unlike multiple original equipment manufacturers issuing profit warnings, Renault stands out." UBS rates Renault at sell with a 26 euro price target. Shares rise 5.4% to 27.77 euros. (dominic.chopping@wsj.com)
0927 GMT - Bitcoin's decline highlights continued uncertainty over U.S. monetary policy, institutional investment demand and geopolitical tensions, Zaye Capital Markets analyst Naeem Aslam says in a note. The Federal Reserve held interest rates steady Wednesday but two policymakers favored raising rates which reinforced concerns monetary conditions could remain restrictive, he says. U.S. data Thursday including third-quarter GDP, PCE inflation and weekly jobless claims will provide important signals. "Stronger-than-expected GDP accompanied by elevated inflation could reinforce expectations for restrictive monetary policy, strengthening Treasury yields and potentially pushing bitcoin toward the $79,000-$80,000 support region." Softer inflation alongside resilient growth could improve risk appetite, reduce rate expectations and lift bitcoin towards $81,500-$82,000, he says. Bitcoin falls 1.6% to $79,939, LSEG data show. (renae.dyer@wsj.com)
0924 GMT - STMicroelectronics should benefit from growing semiconductor demand in the coming months, Jefferies analysts write in a research note. The European chip maker said demand increased further in the third quarter, supported by strong bookings and improving visibility. "We expect the company's strengthening trend to continue into 2027," analysts say, citing data centers, satellites, and improvements across the industrial and automotive end-markets. STMicroelectronics is forecasting fourth-quarter revenue of about $4.15 billion and a gross margin of about 39%, above Jefferies estimates of nearly $4.12 billion and 38.3%. STMicroelectronics shares trade 0.4% lower at 43.20 euros. (mauro.orru@wsj.com)
0913 GMT - China's commercial demand for oil has likely peaked, Ole Hansen, head of commodity strategy at Saxo, says at a media briefing. There has been a major move toward electrification around the world, particularly in China, where electric vehicles have moved beyond cars to include heavy vehicles like trucks, which aren't common elsewhere, Hansen says. Petrol cars might not make economic sense anymore given high energy prices, he adds. Still, it remains unclear the extent to which elevated energy prices have driven the move toward electrification in the Chinese market, and the impact on demand for oil as a result, he says. However, aggressive stockpile rebuilding is likely to keep supporting demand, especially if oil prices fall toward $70-$80 a barrel, he adds. (kimberley.kao@wsj.com)
0901 GMT - Magnum Ice Cream's beat was more than the market expected, and all regions came out ahead, analysts at BNP Paribas London said in a note. Though China was dented by unfavorable weather, an extended European summer boosted growth, they add. Overall, sales in the third quarter were strong, the analysts write. Shares are up 1.64% at 17.63 euros. (aimee.look@wsj.com)
0901 GMT - Volkswagen had a difficult third quarter that was hurt by many restructuring one-offs, J.P. Morgan's Jose Asumendi writes. However, underlying group margins landed close to 4%, the outlook for the year has been confirmed and the company has an ambition to deliver around 4% group margins again in the fourth quarter. Liquidity remains strong at 33 billion euros and the company generated a small positive clean free cash flow in the third quarter. Volkswagen still expects full-year sales revenue at around 315 billion euros, an operating return on sales of up to 1%, automotive net cash flow at 3 billion-6 billion euros and net liquidity at 32 billion-34 billion euros. The bank rates Volkswagen stock at neutral with a 110-euro price target. Shares slip 0.1% to 69.10 euros. (dominic.chopping@wsj.com)
0850 GMT - TotalEnergies' third-quarter results beat consensus forecasts by a narrow margin, but this is still positive given that the French energy major faced elevated expectations, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani write in a note to clients. Adjusted net profit of $9.1 billion beat consensus expectations, while net debt fell to $13.8 billion from $19.7 billion and the company confirmed its plans for a $2.5 billion buyback this quarter. "Looking divisionally, there were only marginal differences versus market expectations, although the [quarter-on-quarter] performance from integrated LNG was a standout, as previously flagged by the company," the analysts say. Shares rise 0.8%. (adria.calatayud@wsj.com)
0850 GMT - Adidas delivered a reassuring print for the third quarter, analysts at J.P. Morgan say. The German company recorded sales of 7.25 billion euros for the quarter through September. As expected, the main drag was the soft wholesale footwear business in Europe, the analysts write in a note. This is in line with recent industry commentary of a promotional footwear market amid soft consumer sentiment, they add. Outside of Europe momentum remains strong, in particular in North America, they say, adding that it is a sign that Adidas has been taking market share in an increasingly challenging market. Shares rise 2.8%. (andrea.figueras@wsj.com)
0849 GMT - Copper price may continue to benefit from China's AI development, according to BofA Securities in a research note. Copper use in China data centers is likely to rise as China continues to increase investment in artificial intelligence, the bank says. The base metal's use in Chinese data centers could rise to 1.3 million metric tonnes by 2030 from 340,000 metric tonnes in 2025, the bank says. This is led by power delivery and interconnects, which are copper cables linking data center hardware, the bank says. With supply constrained, copper is the bank's top pick in the materials sector.
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