The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0808 ET - Dollarama is off to a strong start to FY2026 with help from its Latin American-facing business. Dollarama's 60.1% share of Dollarcity's net earnings for 1Q amounted to $40.3 million, compared to $22.1 million for Dollarama's 50.1% share during the same period last year. Dollarcity's 1Q performance was mainly driven by a 12.6% rise in sales, supported by an increase in the total number of stores to 644 from 547 a year earlier. And there's more to come from the growing Latin American chain. Dollarama CEO Neil Rossy says it continues to "advance its expansion plans, with the first stores in Mexico slated to open imminently." (adriano.marchese@wsj.com)

0733 ET - Daimler Truck's investor event next month is likely to focus on capital allocation and the Europe cost-cutting program, Deutsche Bank analyst Nicolai Kempf writes. Near-term trends in North America will also likely attract focus. Despite significant progress since it was spun-off from Daimler, the company's EU-market decline last year highlighted the need for further measures to improve resilience and close the profitability gap with Swedish peers, he says. Deutsche Bank thinks that a 1 billion euro increase in earnings, combined with a re-rating, could increase the company's market capitalization by nearly 50% in the medium term. "In the interim, we look for another 2 billion euro share-buyback program over two years, implying a 7% yield." Shares rise 0.1%. (dominic.chopping@wsj.com)

0637 ET - Nintendo's Switch 2 sales suggest that its fiscal 2025 guidance is too conservative, says Kazunori Ito, equity research director at Morningstar. Nintendo's reported sales of 3.5 million units imply it hit over 20% of its FY target in just four days, Ito notes. "The Switch 2 has got off to a flying start," outperforming its predecessor and the PlayStation 5. Ito reckons the drop in Nintendo shares likely reflects some profit-taking. Investors may also be concerned about potential risks. If the Trump administration imposes a higher tariff rate, for example, Nintendo will likely be compelled to raise console prices in the U.S., which could slow shipments, he says. Morningstar has a fair-value estimate of Y12,000 on Nintendo, which closed at Y11,665. (fabiana.negrinochoa@wsj.com)

0622 ET - Safran's current share price broadly reflects the company's profitable growth, Citi analysts say in a research note. Citi, as a result, downgrades its rating on the French aerospace-industry supplier to neutral from buy. Citi raises its target price for Safran shares to 275 euros from 260 euros previously as part of Citi's valuation model which assumes a five-year operating profit growth of about 11% and a medium-term growth rate of 8%. The model also assumes a long-term cash conversion rate of 100% of the company's operating profit, the analysts say. Safran shares trade 0.12% higher at 260.60 euros. (pierre.bertrand@wsj.com)

0604 ET - Norges Bank Investment Management is planning to vote in favor of the takeover of Banca Generali by Mediobanca at a shareholder meeting on Monday, according to its website. The Norwegian wealth fund has a 1.45% stake in Mediobanca and is its seventh largest shareholder, according to LSEG Workspace data. Proxy advisors ISS and Glass Lewis have advised in favor of the deal while other institutional investors in Mediobanca including U.S. pension funds and asset managers Calvert and Praxis have said they would also vote "for" at the meeting. Norges invests in almost all of Europe's publicly listed companies and also owns a 2.95% stake in Monte dei Paschi, which is trying to buy Mediobanca in a competing transaction. In April, Norges voted in favor of the bank's new share issue to fund the takeover. (elena.vardon@wsj.com)

0550 ET - Inditex's results highlight a natural deceleration in sales growth following an exceptional postpandemic spending boom, Morningstar analyst Jelena Sokolova writes in a note. The owner of Zara and other fashion brands reported sales growth of 4.2% in the quarter ended April and of 6% in the five weeks to June 9 compared with the year-earlier periods and adjusted for currency changes. The surge in demand after the pandemic was buoyed by unique factors including increased savings and a shift toward affordable brands during the cost-of-living crisis, the analyst says. "However this strong post-pandemic growth was temporary and would have been difficult to maintain," Sokolova says. Despite this moderation, Inditex remains a leader in the apparel industry, she adds. Shares are down 3.4% at 47.52 euros. (andrea.figueras@wsj.com)

0543 ET - Mediobanca's offer for Banca Generali keeps its strategic options open at a time when the bank is at a crossroad, brokerage firm Autonomous writes. Mediobanca and Banca Generali shareholders are set to sign off on the proposed deal on Monday. Mediobanca is itself under a competing takeover offer from Banca Monte dei Paschi, and pursuing its own acquisition might pressure the bidder to up its offer, analysts write. "Given a potential choice, it will become more important to think about the relative value upside and downside of both the MB/BG and the BMPS/MB proposed deals," they note. Shareholders have to decide whether to merger with BMPS to form a larger universal bank, to combine with Banca Generali to create a large wealth manager, or to opt for a standalone future, they note. Mediobanca shares are up 40% year to date and trade at 19.64 euros. (elena.vardon@wsj.com)

0545 ET - The upcoming annual meeting of the American Diabetes Association starts next week and looks set to be busy, with next-generation obesity drugs in focus, Berenberg analysts Kerry Holford and Luisa Hector write. The bank looks forward to pivotal data presentations from Novo Nordisk on CagriSema and Eli Lilly on Orforglipron, among others. Berenberg prefers buy-rated Lilly over hold-rated Novo Nordisk. The valuation gap between the two is warranted, given Lilly's superior obesity franchise and pipeline, and more diverse portfolio. Following Novo Nordisk's disappointing CagriSema headline data last December, investors' interest in obesity drugs has waned. However, important data presentations from both companies could revive investor interest, Berenberg says. (dominic.chopping@wsj.com)

0540 ET - CATL's overseas market share in EV batteries continues to grow, HSBC Global Research analysts write in a note. These markets offer higher margins and less competition than in the domestic Chinese market, they add. In Europe, the pace of EV adoption is rising and CATL continues to build localized production capacity in Germany and Hungary, they add. Since tariffs might be the biggest challenge ahead for battery makers in China, CATL's strong commitment to international expansion will help navigate these trade risks, they say. HSBC Global Research initiates its Hong Kong-listed shares with a buy rating and a target price of HK$359.00. Shares last closed at HK$308.40. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0510 ET - MTU Aero Engines appears poised for further growth and its short- and medium-term outlook remains strong, Berenberg's George McWhirter and Lavinia Norton say. This is driven by continued high customer demand and opportunities to expand market share, the analysts write in a research note. The German aircraft-engine manufacturer keeps capturing growth opportunities through both technological advances and strategic capacity expansion, the analysts say. In addition, mitigating actions by the company to counter U.S. tariffs could significantly reduce their impact. This could bring the total tariff burden down to a low-double-digit number, from the mid-to high-double-digit figure it had initially guided for the year. Shares trade 2.2% higher at 356.40 euros. (pierre.bertrand@wsj.com)

0501 ET - Centrica's involvement in the Sizewell C nuclear project could deliver a 5% market-cap benefit, Jefferies analysts write in a note. The nature of the deal and Centrica's exposure to cost overruns or delays would impact returns, they write. The details have not be announced but the projection assumes a 10% internal rate of return and reasonable risk protection, they write. It also assumes an average 150 million pound a year investment over a 15-year construction period for a roughly 20% equity stake, they write. Shares trade up 0.4% at 164 pence.(adam.whittaker@wsj.com)

0447 ET - UniCredit is ready to drop its Banco BPM takeover offer if the Italian government doesn't clarify the conditions imposed on the transaction, the bank's CEO says at a conference. UniCredit launched an unsolicited offer for its domestic rival last year and Rome has set out prescriptions to greenlight the deal. If the transaction closes without clarity and the lender finds itself in breach, it could face a fine of 20 billion euros, Andrea Orcel says, adding that he won't take that risk. The probability that the BPM acquisition will go through is currently around 20%, the executive calculates. Orcel has said before that he is open to walking away if the conditions jeopardize value creation. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

June 11, 2025 08:08 ET (12:08 GMT)

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