The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0449 GMT - Lenovo Group is well-positioned to capture growth opportunities in AI infrastructure and edge AI, Citi analysts say in a research note. The company's operational flexibility in product design, manufacturing and supply-chain management should help it navigate macro volatility, they say. Lenovo's shares fell Thursday despite a fiscal 1Q profit beat, as gross profit margin weakness weighed and profit-taking likely emerged after a recent rally. However, Lenovo's stocks remain attractive to Citi due to its solid fundamentals and attractive valuation. Citi maintains its buy rating on Lenovo and raises its target price to HK$13.60 from HK$13.30 given its solid outlook. Shares are last at HK$10.65. (sherry.qin@wsj.com)

0404 GMT - NetEase's game gross receipts are likely to improve sequentially in 3Q on major game updates, Daiwa analysts say in a research note. Major updates of legacy titles such as "Once Human" and "Identity V" happened in July, with strong momentum heading into 3Q, they say. Given the low base in 2H 2024 due to the adjustments for "Fantasy Westward Journey" and "Eggy Party," Daiwa expects revenue growth in online games to accelerate to 16.5% on year in 3Q. Meanwhile, the recently launched "Marvel Mystic Mayhem" still has a chance to improve its gross receipts, as NetEase plans content updates every six weeks to maintain its one million player base, they add. Daiwa raises its target price on the Chinese videogame company to HK$260.00 from HK$235.00 while keeping a buy rating. Shares are last at HK$204.80. (sherry.qin@wsj.com)

0358 GMT - Telstra's bulls at Morgan Stanley are keeping a close watch on the Australian company's new satellite trials, which represent a way for it to entrench its connectivity leadership. They say this leadership is essential if Telstra's stock is to maintain its premium valuation relative to its peers. They tell clients that the stock would likely de-rate if one of Telstra's rivals takes leadership of satellite connectivity, which is important in a country with large areas of limited infrastructure. MS trims its target price 1% to A$4.95 and stays overweight on the stock, which is down 0.2% at A$4.84. (stuart.condie@wsj.com)

0245 GMT - NetEase's 2Q results miss is unlikely to derail its recovery story, HSBC analysts say in a research note. NetEase no longer discloses its revenue contribution by mobile and PC games separately, but HSBC estimates that mobile games revenue fell 1% on year while PC games revenue grew 66%. 2Q's net profit miss was driven by higher marketing spending in games that subsequently yielded chart-topping performance by a few key titles in July and August, they say. "We think it was money well-spent," they add. HSBC lifts its 3Q games revenue growth forecast to factor in the successful performance of its game titles so far this summer. HSBC maintains a buy call on NetEase but trims its ADR target price to $157.00 From $158.00. Its ADRs last closed at $129.67. (sherry.qin@wsj.com)

0153 GMT - Tencent continues to be one of the best-positioned Chinese tech companies regardless of macro conditions, Barclays analysts say in a research note. They attribute Tencent's better-than-expected 2Q margins to the effective use of AI to improve productivity and lowering costs, the analysts say. Barclays reckons that near-term opportunities to reap the benefits of AI will not be for consumer applications but for enterprises' internal uses. Tencent's allocation of more expenses toward investments in its AI native applications is a positive move, although it would be challenging to monetize these apps through ChatGPT-style subscription model, they add. Barclays maintains an overweight rating on Tencent with its ADR target price unchanged at $77.00. ADRs last ended 3.0% lower at $74.79. (sherry.qin@wsj.com)

0152 GMT - Malaysia's home fiber price war may have peaked as operators scale back promotions, Maybank IB analyst Tan Chi Wei says in a note. CelcomDigi remains aggressive, but rivals appear less so. Maxis has shifted from bundling partly subsidised devices to instalment plans, while TIME dotCom ended its free first-month offer in July, he says. This suggests a potential easing in competitive intensity, which Tan views positively. Fiber penetration is nearing 60% and showing signs of plateauing, suggesting wholesale services--such as data center connectivity--could be the next growth driver, he reckons. Cost control remains key, while Axiata Group is reshaping its portfolio to cut debt and pivot into a yield stock, he adds. Maybank maintains a neutral rating on Malaysia's telcos, pegging Telekom Malaysia and Axiata Group as its preferred picks. (yingxian.wong@wsj.com)

0134 GMT - Telstra's mobile growth is likely to have remained subdued into the first half of its current fiscal year, UBS analysts warn. They tell clients in a note that mobile was the main area of softness in the Australian telecommunications provider's annual result, with factors including the removal of idle services and the closure of Telstra's 3G network. They say that Telstra management expects more rational mobile pricing across the industry through to the end of the calendar year, but also lower growth. UBS lifts its target price 4.3% to A$4.80. Shares are up 0.2% at A$4.86. (stuart.condie@wsj.com)

0119 GMT - Telstra's A$1 billion share buyback isn't enough to keep Jarden analysts positive. They lower their recommendation on the stock to neutral from overweight, telling clients in a note that weaker-than-expected growth in postpaid mobile services is softening the outlook. With prepaid growth strong at both Telstra's wholesale business and rival TPG Telecom, the view at Jarden is that cost-of-living pressures have built up and prompted consumers to look for cheaper services. The analysts lower their EPS forecasts for fiscal 2026 and fiscal 2027. Target price falls by 2.0% to A$4.80. Shares are up 0.5% at A$4.875. (stuart.condie@wsj.com)

2233 GMT [Dow Jones]--Applied Materials continues to expect strong demand for artificial intelligence will continue to grow, just at an uneven pace amid near-term challenges in China and choppy demand from leading-edge customers, CFO Brice Hill says in an interview. "We're not changing our view of strong demand in AI, that leading edge process technologies will continue to grow, that DRAM will continue to grow," Hill says. "But it's uneven. We're not seeing a steady growth pattern." Applied Material's significant investments in the U.S., including through a partnership with Apple and a new facility in Arizona, are further evidence of the company's confidence in its long-term growth, he says. (kelly.cloonan@wsj.com)

1931 GMT - Cellebrite's newly permanent chief executive, Thomas Hogan, took over the role on an interim basis in January, about a month after completing final treatments for Stage 4 non-Hodgkin's lymphoma. Hogan is in complete remission and has steadily regained his energy and stamina, Chairman Adam Clammer says on a call with analysts. Hogan had been the board's executive chairman since 2023 until his interim CEO appointment. "We were thrilled when Tom raised his hand to remove the interim designation, which made our choice very easy," Clammer says. "The board is unanimous in its conviction that Tom is the right individual to lead Cellebrite." Hogan says on the analyst call that he wouldn't have returned to work for any company other than Cellebrite, where he feels "the obligation to lead a company that truly makes the world a safer place every day." Shares rise 9.9% to $15.37. (dean.seal@wsj.com)

(END) Dow Jones Newswires

August 15, 2025 04:20 ET (08:20 GMT)

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