The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0347 GMT - Elevated valuations of South Korean shipbuilding stocks could correct in 2H, Nomura's Eon Hwang says. Expectations for more defense contract wins and higher freight rates amid disruptions in the Suez Canal and Strait of Hormuz may support valuations in 1H, but falling new ship prices and easing Middle East tensions turn Nomura cautious on 2H, the analyst writes in a note. Nomura downgrades its ratings on HD Hyundai Heavy Industries to reduce from neutral, and slashes target price by 33% to 350,000 won. Its intermediate holding company HD Korea Shipbuilding & Offshore Engineering is also downgraded to neutral from buy, with its target price cut by 33% to 410,000 won. HD Hyundai Heavy is down 0.7% at 563,000 won, and HD Korea Shipbuilding is 1.6% lower at 407,000 won. (kwanwoo.jun@wsj.com)
0300 GMT - BOC Aviation's earnings are likely to be supported by solid aircraft demand amid a tight supply backdrop, says DBS Group Research's Jason Sum in commentary. The aircraft-leasing company expects the supply-demand imbalance to persist through the end of the decade even as aircraft makers' deliveries improve. Sum doesn't anticipate demand for new-generation aircraft to soften in a higher-fuel environment given these have better fuel efficiency. BOC Aviation's exposure to the Middle East is also limited at around 8.7% of its fleet, he adds. The company's robust balance sheet should also enable it to deploy capital into buy-and-leaseback deals or mergers and acquisitions, he says. DBS is reviewing its buy rating and HK$88.00 target price. Shares rise 1.9% to HK$78.15. (megan.cheah@wsj.com)
0300 GMT - Investors should prioritize Tencent's growth potential over short-term profitability, UBS analysts say in a research note. Tencent's Chinese tech peers, such as Alibaba and Baidu, have experienced valuation multiple expansion following announcements of additional AI investments, the analysts say. Tencent has lagged peers due to investors' concerns about its relatively slower pace of AI spending, the analysts note. Tencent's recent AI product launches and its commitment to further AI investments, suggest the stock is positioned for a valuation multiple re-rating driven by its growth potential, they say. Even after factoring in Tencent's planned AI investments, its 2026 adjusted EPS growth is still attractive compared with global gaming and advertising platforms, they add. Shares are last 0.1% lower at HK$512.00. (sherry.qin@wsj.com)
0250 GMT - Addvalue Technologies' potential spinoff and U.S. listing of its Inter-Satellite Data Relay System business could see the Singapore-listed company raise funds at a significantly higher valuation, Maybank analyst Jarick Seet says in a note. The analyst estimates the unit could have a market capitalization of US$200 million-US$300 million, noting U.S. peers trade at 70X-200X price-to-sales. A higher valuation could allow Addvalue to sell a stake and return cash to shareholders, Maybank says. The bank has a buy rating and a target price of S$0.120. Shares are up 3.5% at S$0.088. (venkat.pr@wsj.com)
0235 GMT - Aluminum prices are expected to be supported by tightening global supply and steadily rising demand, says Morgan Stanley, which initiates coverage of Chuangxin Industries and Tianshan Aluminum with overweight ratings. The bank expects limited supply growth in China, given a strictly enforced capacity ceiling. "Escalating tensions in the Middle East could further widen the supply deficit, driving upside to prices," MS says. It puts a HK$37.50 target price on Chuangxin and a 23.20 yuan target price on Tianshan. Shares of Chuangxin are up 0.9% at HK$25.74, and Tianshan shares are down 2.7% at CNY15.76. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0218 GMT - Westgold Resources could deliver production rates above consensus and ongoing capital returns via both buybacks and dividends, says UBS, which initiates coverage of the stock with a buy rating. It puts a A$10.25 target on Westgold's shares. The gold miner seems poised for steady growth, says UBS, which expects there will be a good business case to expand Higginsville further, to four million metric tons per annum. UBS also reckons there's more value to be found in its noncore asset sales, although "the exact quantum is unclear." Westgold is down 2.4% at A$5.25. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0212 GMT - Li Ning's store-related expenses may increase on year in 2026, due to its possible opening of more direct retail stores, Citi analysts Xiaopo Wei says in a note. The analyst notes that the Chinese sportswear-apparel company's 2025 net was 9% above consensus due lower-than-expected selling costs. The company's balance sheet remains strong with a net cash of CNY20 billion as at end-2025. Citi points to the increase in cash conversion cycle by two days on year to 37 days. Citi has a buy rating on its shares, which are up 8.8%. (venkat.pr@wsj.com)
0126 GMT - Thaifoods Group's short- and long-term business outlook appears solid, UOB Kay Hian analysts say in a research report. It has shifted its strategy from a production-driven company to adopting a market-driven approach to reduce exposure to volatility in commodity prices, the analysts say. The Thai company's retail segment is a key growth driver, with it planning to increase retail store count to 1,000 within the next two-three years from nearly 700 branches currently. Earnings of the producer and distributor of food products are likely to improve on quarter in 1Q, supported by an increase in gross profit margin due to higher livestock prices. The brokerage raises the stock's target price to THB7.80 from THB6.50, with an unchanged buy rating. Shares last closed at THB7.15. (ronnie.harui@wsj.com)
0124 GMT - CK Hutchison's well-diversified business portfolio is likely to continue generating stable cash flow, say Citi analysts in a note. The portfolio is spread across geographies and segments, which helps the conglomerate reduce inherent risks and navigate volatility, they say. While the port business' throughput is likely to slow amid geopolitical tensions, the company expects this to be offset by retail and infrastructure segments' earnings growth, the analysts note. Citi raises its estimated net-asset value on CK Hutchison to HK$150.44 from HK$147.47 to reflect operating trends, and expects the stock's discount to NAV to narrow if the company unlocks value through mergers and acquisitions. Citi retains its buy rating and HK$78.00 target price. Shares last closed at HK$59.95. (megan.cheah@wsj.com)
0030 GMT - Ricegrowers' bull at Bell Potter sees the current unfavorable seasonal factors presenting an opportunity for investors to accumulate stock. Analyst Jonathan Snape tells clients that current low levels of storage utilization around Australia's Southern Murray-Darling Basin and the rising risk of drier conditions through 2H 2026 suggest two consecutive poor cropping outcomes. Yet he remains constructive on Ricegrowers' ability to drive earnings growth, and sees global price indicators hinting at an improved position relative to 2026 domestic contract prices. Bell Potter cuts its target price 9.3% to A$17.00 and keeps a buy rating on the stock, which is down 0.2% at A$12.20. (stuart.condie@wsj.com)
0019 GMT - Propel Funeral Partners keeps its bull at Bell Potter despite weaker-than-expected 1H revenue. The Australian funeral provider's average revenue per funeral was softer than analyst Chami Ratnapala had anticipated, but she retains a buy rating on factors including an ageing population. She sees the ageing of Australia's baby boomers as a sizeable volume catalyst from 2026 onwards. Ratnapala also flags the company's commentary regarding its M&A pipeline and views a trading update due in May as a potential share-price catalyst. Bell Potter cuts its target price 15% to A$15.00. Shares are down 0.6% at A$4.115. (stuart.condie@wsj.com)
2349 GMT - REA Group's higher-than-forecast price increases are seen by its bull at Citi as reducing downside risk from any listings softness from rate hikes and broader macroeconomic weakness. Analyst Siraj Ahmed tells clients in a note that the Australian real-estate advertiser's proposed 8%-10% price rises compare with his prior expectation of a 7% increase. The move should also ease investor concerns that the News Corp-controlled company's pricing power could be hit by a resurgence at CoStar-owned rival Domain. Citi has a buy rating and A$199.00 target price on the stock, which is up 0.8% at A$159.88. News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 23:47 ET (03:47 GMT)
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