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.

0742 GMT - Pony AI will likely turn profitable in 2028, UOB Kay Hian analysts write in a note. The company's coming earnings will be driven by robotaxi fleet expansion and hardware cost reduction, they say. The company's fleet expansion will help boost its gross margin. Meanwhile, Pony AI's management expects a further 20% cost reduction next year, which will also help support the company's profitability. Pony AI's pivot to an asset-light method and collaboration with Sunlight Mobility will also help support the company's earnings growth, they add. UOB Kay Hian maintains its buy rating on the stock with target prices at $26.10 and HK$203.60. Shares last at $13.45 and HK$107.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0723 GMT - Li Auto's earnings will likely remain under pressure next year, given its sluggish fourth-quarter revenue and sales guidance, says Morningstar analyst Vincent Sun in a note. The vehicle recall of its MEGA model, which Morningstar estimates lowered gross profit by around CNY1 billion, resulted in an operating loss for 3Q, he notes. The company's management expects volume growth to resume next year with the resolution of the battery supply bottleneck and new generation plug-in hybrid model launches, he says. However, competition will likely pressure Li Auto's sales volume growth while the contribution from battery models remains low, he says. Morningstar cut Li Auto's vehicle sales volume forecast by 15% to 17% between 2025 to 2029. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0405 GMT - Bumi Armada's recent share price decline following the stalled merger talks with MISC appears overdone, Hong Leong IB analyst Thye May Ting says in a note. The company's balance sheet remains robust, with net gearing improving to 0.25X in 3Q from 0.28X in 2Q and a lower debt-to-equity ratio of 0.46X from 0.52X in 2Q, she says. Cash balances held steady at around MYR1.2 billion, providing sufficient liquidity for ongoing operations and potential participation in coming floating production, storage and offloading vessel bids. Ting cuts Bumi Armada's 2025-2027 earnings forecasts by 7.8%, 8.3%, and 7.7%, respectively, to reflect lower contributions from Armada Kraken and Olombendo FPSOs. Hong Leong cuts Bumi Armada's target price to MYR0.49 from MYR0.50, while maintaining a buy rating on the stock. Shares are 1.6% lower at MYR0.30. (yingxian.wong@wsj.com)

0318 GMT - Pony AI will likely reach single-unit economics breakeven across its Gen-7 robotaxis in 2026, and for its entire robotaxi fleet in 2027, when its fleet size ramps up to 10,000 units, Daiwa analysts write in a note. The company has extended its cooperation with Sunlight Mobility, a ride-hailing service operator, to lease robotaxi vehicles and pursue an asset-light model, they say. Daiwa expects Pony AI to hold the majority of its vehicle assets itself until end-2027. China's robotaxi industry will also face more competitors next year, including XPeng and Didi. In the short term, more competitors will likely bring more pros than cons for Pony AI, as the company could provide regulators with data at scale and accelerate permits, zone expansion and the establishment of standards, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

November 28, 2025 04:20 ET (09:20 GMT)

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