The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1600 GMT - Union Pacific is set up for a strong 2027, UBS analysts write in a note, upgrading the stock to buy. Their analysis suggests 3.5% volume growth in 2027, including 6% to 7% intermodal volume growth. Signals from the trucking business also indicate a pricing tailwind next year. And though their model doesn't reflect the proposed merger with Norfolk Southern, whose outcome is uncertain, they see the deal as adding optionality for the stock. "We see multiple potential drivers of EPS growth and stock price appreciation in 2027 including volume growth, stronger pricing, and potential favorable developments in the merger regulatory review process," the analysts write. Shares are up 0.6%. (elias.schisgall@wsj.com)

1313 GMT - J.B. Hunt Transport Services now expects 3Q earnings to decline 5% to 10% sequentially from 2Q. The forecast comes as intermodal pricing has struggled to keep pace with rapidly rising costs, Morgan Stanley analysts say in a research note. The logistics company says it expects roughly $25 million in incremental driver-related costs this quarter, as it ramps up hiring, implements sign-on bonuses and institutes pay raises. At the same time, J.B. Hunt anticipates a nearly $10 million sequential fuel headwind, alongside higher claims costs. Morgan Stanley analysts note, though, that these higher costs should be at least partially offset by improving volumes. J.B. Hunt slides 10% premarket. (connor.hart@wsj.com)

0833 GMT - Brent crude oil's rise above $100 a barrel seems to reflect pricing in of severe risk scenario, rather than a confirmed, lasting loss of oil supply, says BNY Investments' Aninda Mitra in a note. Traders appear to be placing a premium on immediate oil supply security, which reflects the risk of a large and prolonged disruption that hasn't clearly materialized yet, he says. While Iranian exports appear to have come under pressure in recent weeks, this hasn't yet translated into a broader collapse in supply flowing through the Strait of Hormuz, he says. However, he notes that the situation around Bab al-Mandeb Strait deserves close attention as it could affect a critical shipping lane. Front-month Brent crude oil futures decline 0.9% to $107.79 a barrel; WTI drops 1.5% to $104.25 a barrel. (megan.cheah@wsj.com)

0700 GMT - Stellantis' recovery is taking time, Berenberg's Romain Gourvil and Tommy Whitfield write as they downgrade the stock to hold from buy and cut the target price to 5.10 euros from 7.80 euros. There are now legitimate questions over the carmaker's margin trajectory over the remainder of the year, especially as inventory destocking could become a volume headwind, they say. Management say improving pricing in North America, stabilizing pricing in Europe and accelerating cost-savings will help offset this, they say. However, intensifying raw material costs and still-competitive pricing conditions could offer more challenges, they add. Shares closed at 4.49 euros on Tuesday. (adam.whittaker@wsj.com)

0530 GMT - BMW's new models provide momentum that help offset a challenging Chinese market, Berenberg's Romain Gourvil and Tommy Whitfield write as they upgrade the stock to buy from hold. They increase its target to 75 euros from 69 euros. The analysts had downgraded the stock in January as they believed it faced significant near-term earnings risk from its overly optimistic stance on China. With this passed, investors will focus on BMW's ability to improve profits as it rolls out a new generation of electric vehicles under its Neue Klasse platform, they say. The carmaker also has untapped cost-saving opportunities and there is credible evidence its research and development spend has peaked, they say. (adam.whittaker@wsj.com)

0302 GMT - China Merchants Port's pricing power could be strengthened by tight capacity at key terminals, say DBS Group Research analysts in a note. The Chinese port operator's terminals in China are close to being fully used. Tight capacity at Chinese ports could support favorable tariff negotiations from 2027, the analysts say, citing management. The analysts expect a 2.0%-3.0% average tariff increase at the Chinese terminals from next year, compared with recent 1.0%-2.0% increases. They raise their 2027 revenue and net profit projections by 1.0%-2.0%. Meanwhile, China Merchants' moves to optimize its portfolio could be a rerating opportunity for the stock. DBS maintains its buy rating and 20.00 Hong Kong dollar target price. Shares rise 0.8% to HK$16.39. (megan.cheah@wsj.com)

0235 GMT - Hyundai Mobis' earnings could be dragged lower by a stronger won, Nomura's Angela Hong says. The South Korean auto-component supplier remains sensitive to the won's appreciation against the dollar because a substantial portion of its aftermarket parts is sourced in Korea and exported globally, the analyst writes in a note. Nomura lowers its earnings-per-share estimates for the company by 8% this year and by 10% next year, citing the won's 13% gain against the dollar since July, Hong says. Still, existing local inventory at the company could help buffer immediate foreign-exchange headwinds, she adds. Nomura cuts its target price for the stock to 470,000 won from 560,000 won but keeps a buy rating. Shares are 3.2% lower at 382,000 won.