Global Equities Roundup: Market Talk

Dow Jones
4小時前

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

0720 GMT - Informa's acquisition of B2B live-events company Clarion makes sense and is complementary, Bernstein's Annick Maas and Christophe Cherblanc write. They add that the planned separation of its academic business, Taylor & Francis, makes the investment case clearer. The events and academic-publishing group is part-funding the acquisition via a 940 million pounds equity issue. It said the board will review all options to support the academic business and publish the result of its review in March. Bernstein has an outperform rating and 10.15 pound target price on the stock. Shares are up 0.2% at 863.80 pence, but 2.2% lower over the year-to-date. (ian.walker@wsj.com)

0717 GMT - European stock indexes rise in opening trade, as the continent catches up with gains in U.S. stocks Monday. Healthcare, software and banks rise as the Europe-wide Stoxx 600 gains 0.45%. London's FTSE 100 adds 0.6%, led by drugmaker AstraZeneca--up 2%. The German DAX gains 0.5% as Merck climbs 2.8%, while sports retailer Adidas adds 1.2%. In Paris, the CAC 40 is up 0.3%. Software group Capgemini gains 1.75%, while most luxury stocks climb. However, L'Oreal falls 0.9% after the company engaged restructuring advisers in the U.S. Banks push Italy's FTSE MIB and the Spanish IBEX 35 up 0.6% and 0.7%, respectively. The Dutch AEX is 0.3% higher as healthcare stocks gain, though semiconductor group BE Semiconductor slides 3.6%. (josephmichael.stonor@wsj.com)

0710 GMT - Sanofi needs mergers and acquisitions to refill its late-stage drug pipeline, and its recently expanded collaboration with Regeneron Pharmaceuticals means it can shift its focus to dealmaking, Berenberg analysts say in a research note. "Sanofi can now move forward to deploy its [30 billion to 40 billion euros] of balance sheet capacity on business development," the analysts say. Since the drug candidates Sanofi and Regeneron will jointly develop are at an early stage, the French drugmaker has limited pivotal study results on the horizon, Berenberg says. Data on a late-stage trial for frexalimab in multiple sclerosis and a midstage for brivekimig in skin condition hidradenitis suppurativa due in the second half of 2027 are the next updates Berenberg will be watching, the analysts say. Sanofi shares rise 1%. (adria.calatayud@wsj.com)

0652 GMT - Early election in Spain are unlikely to have a material impact on earnings for Spanish banks, Citi analysts write. Spanish Prime Minister Pedro Sanchez called for snap elections that will take place on 29 November. Investors will judge whether the outcome of the election changes views on medium-term domestic growth, the housing sector, bank consolidation, changes in the bank levy framework and the government's stake in CaixaBank. A potential change in government could influence Spain's approach to its holding, while a new centre-right government could remove the bank levy, Citi says. (michael.hennessey@wsj.com)

0652 GMT - Schneider Electric's deals to buy PTC and Cognite change the investment case on the French engineering group to make it more reliant on its less attractive industrial-automation division, J.P. Morgan analysts say. JPM cuts its recommendation on Schneider to neutral from overweight, while trimming its price target to 310 euros from 345 euros. Schneider is spending big on its industrial automation division, with $27 billion allocated to the unit through the PTC and Cognite acquisitions, but this dilutes strong growth at its energy-management division that made the group an attractive investment, the analysts say in a research note. JPM says its preference in the industry shifts to Schneider's smaller French peer Legrand. Shares in Schneider closed 10% lower Monday at 272.80 euros. (adria.calatayud@wsj.com)

0637 GMT - SK Innovation is likely to benefit from higher lubricant base oil prices, LS Securities analyst K.H. Chung says. The South Korean refiner is a global leader in premium lubricant base oils, producing about 80,000 barrels of Group III base oils a day, Chung writes in a note. She expects the supply shortage of lubricant base oils to persist for more than a year. Tight supply of kerosene and diesel and wider refining margins could also continue to boost the company's earnings, she adds. LS Securities upgrades the stock to buy from hold and raises its target price to 187,000 won from 126,000 won. Shares end 2.6% higher at 158,000 won. (kwanwoo.jun@wsj.com)

0629 GMT - News that Vaxcyte's experimental pneumonia vaccine held up against two approved shots in a late-stage clinical trial should open a new revenue stream for Switzerland's Lonza Group starting in a couple of years, RBC Capital Markets' Charles Weston says in a research note. "Lonza is fully embedded in Vaxcyte's manufacturing supply chain through multiple overlapping agreements," the analyst says. Vaxcyte's vaccine is projected to reach $4 billion in annual peak sales, though it is unlikely to launch before 2028, RBC says. At its peak, this could translate into $400 million to $550 million in revenue for Lonza, the analyst estimates. (adria.calatayud@wsj.com)

0611 GMT - Valuations at India's fast-moving consumer goods sector continue to derate amid weak earnings visibility, says HDFC Securities. "With sustained cost headwinds, we may see growth moderation ahead, which alongside margin strain could stress FY27 earnings," it says in a note. While fiscal 2Q revenue growth could improve versus recent quarters on a softer base and selective price increases, persistent raw material inflation is set to weigh on margins. HDFC remains positive on India's long-term consumption opportunity, but reckons that a focus on premium products alone is no longer sufficient to drive broad-based growth. Any demand moderation combined with sustained inflation could further pressure earnings delivery. Against this backdrop, HDFC remains selective and favors stronger execution-led companies such as Nestlé India, Godrej Consumer, Britannia, Honasa Consumer, Emami and Bikaji.

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