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.

0653 GMT - Singapore Post is unlikely to make sizeable divestments, such as that of its flagship SingPost Centre, at least until its strategy has been reset, says OCBC Investment Research's Ada Lim in a note. The postal provider aims to focus on maximizing its asset use and driving operational efficiency, and is currently searching for a new chief executive. The company didn't give an update on the timeline for its new strategy to be shared with the market, Lim says. She reckons it "would be challenging to justify the value of the company based on its earnings potential alone". This drives OCBC to lower SingPost's rating to hold from buy and reduce its fair value estimate to S$0.495 from S$0.59. Shares fall 3% to S$0.485. (megan.cheah@wsj.com)

0550 GMT - Singapore Post's near-term earnings are unlikely to justify its current valuations, Maybank Research's Jarick Seet says in a research report. The postal and e-commerce logistics provider's local core business continues to endure a structural decline in volumes and margin pressure alongside severe competition, the analyst says. Given a lack of catalysts in the monetization of its non-core assets because most of this monetization has already been done, the company's share-price performance may also be muted. Maybank Research downgrades the stock's rating to hold from buy and lowers the target price to S$0.51 from S$0.63. Shares are 2.0% lower at S$0.49. (ronnie.harui@wsj.com)

0128 GMT - SATS Ltd.'s gateway services business is likely to continue boosting the company's revenue, say CGS International's Tay Wee Kuang and Lim Siew Khee in a note. The segment's 1Q revenue rose 11.2% on year, driven by the ground-handling and cargo-handling sub-segments. The aviation services provider's 1Q cargo volume handled increased 10.4%, beating global cargo industry growth, the analysts say, citing data from the International Air Transport Association. Tay and Lim raise their FY 2026-FY 2028 EPS forecasts for SATS by 1.1%-1.4% citing improved revenue momentum, supported by the gateway services division's growth. CGS International raises its target to S$3.83 from S$3.60 and reiterates its add rating as they reckon SATS's growth will continue to outpace the industry's. Shares gain 0.3% to S$3.27.(megan.cheah@wsj.com)

0104 GMT - SATS' near-term earnings visibility likely strengthened, DBS Group Research's Jason Sum says in a research report. Its drivers are cargo strength, margin improvement in its Food Solutions segment, and resilient ground handling and aviation catering volumes, the analyst says. Also, the partnership between the provider of gateway services and food solutions and Japan's Mitsui, together with an expanding product portfolio, should support its growth in non-aviation food. DBS lifts its FY 2026 and FY 2027 core net profit forecasts for SATS by 10% and 7%, respectively. It raises the stock's target price to S$3.80 from S$3.50 with an unchanged buy rating. Shares are 0.3% higher at S$3.27. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

August 25, 2025 04:20 ET (08:20 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.