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.

0758 ET - WELL Health Technologies' plan to sell off its US business would simplify the business and broaden investor appeal, TD Cowen's David Kwan says. The digital healthcare company says it intends to sell its US-based businesses in one-to-two years to free up more capital for its continued expansion in Canada, Kwan says. He calls the company's Canadian business growth impressive, and cites WELL's "highly accretive" M&A strategy. The analyst says WELL's plan to sell its U.S.-based businesses and redeploy capital into its Canadian business would allow the company to "gain a large war chest to buy back shares, repay debt and roll-up the Canadian clinic market in a highly accretive and capital-efficient way." (adriano.marchese@wsj.com)

0547 ET - Axiata Group's core EPS outlook is expected to stay weak through 2026 due to costs related to the XL Axiata-Smartfren merger, CIMB Securities analyst Foong Choong Chen says in a note. Earnings is then expected to rebound strongly in 2027 on merger synergies. He sees upside from potential asset monetization, particularly telecom tower unit edotco, which could cut debt and boost dividend per share earlier than expected, possibly from 2026. CIMB cuts Axiata's target price to MYR2.60 from MYR3.20 while maintaining a buy rating on the stock. Shares closed 1.8% higher at MYR2.21. (yingxian.wong@wsj.com)

0431 ET - Telefonica is unlikely to buy the remainder of Virgin Media O2--its 50:50 joint venture with Liberty Global--due to its balance sheet, ING analyst Jan Frederik Slijkerman writes in a note. The Spanish telecommunications company is considering the purchase of the remaining stake in the British mass media and telecommunications company to achieve full ownership, according to a Bloomberg report. However, "Telefonica's balance sheet already looks stretched," the analyst says. The group will likely rather sell its stake as it needs cash, he says. Shares are down 0.1% at 4.31 euros.( najat.kantouar@wsj.com)

0330 ET - Sage Group's unchanged outlook is unlikely to capture investors' interest, Shore Capital analyst Martin O'Sullivan writes in a note. The accounting-software specialist's interim results were in line with the company-compiled consensus. But despite the company's reassuring narrative, the performance won't drive consensus earnings upgrades or any significantly greater enthusiasm in the stock, he says. Shares are down 5.3% at 1,210.50 pence. ( najat.kantouar@wsj.com)

0020 ET - JYP Entertainment's share price could be resilient partly due to support from its new artists, Daiwa Capital analysts Joon Lee and Thomas Y. Kwon write in a note. Current weak fundamentals at the K-Pop label could turn around in 2026 on the likely bigger revenue contribution from the seven-member boy band KickFlip and other new talents, they say. They cut their 2025 net-profit forecast for JYP by 32% after a larger-than-expected artist fee increase for its flagship boy band Stray Kids hurt 1Q earnings. Still, Daiwa raises the stock's target price by 5.7% to KRW74,000 and keeps an outperform rating. Shares are 6.7% higher at KRW73,700. (kwanwoo.jun@wsj.com)

2256 ET - Tencent maintains its track record of solid execution with steady videogaming profit and revenue growth riding AI transformation in 1Q, Citi analysts say in a note. During the earnings call, management reiterated its AI investment priority to enhance revenue for internal services. To ensure a long-term growth path for its gaming and ad businesses, Citi says that Tencent has identified its prudent approach in maintaining evergreen gaming titles and cultivating recurring ad spending from advertisers. Citi maintains a buy call on Tencent and raises its target price to HK$695.00 from HK$670.00. Shares are last 0.1% lower at 520.50. (sherry.qin@wsj.com)

2209 ET - Tencent's AI investment should position it well for future growth, Barclays analysts say in a research note. While AI has tangibly benefited Tencent's ads and games sectors, it's a discovery process for both the company and users in other areas, the analysts say. In response to the recent Nvidia H20 export restriction, management noted during the earnings call that it's capable of pursing its AI strategies using previously acquired chips. The analysts think that "management recognized the fluid situation with regards to chip procurement [and] therefore has been allocating these chips to areas where immediate tangible returns can be achieved." Management believes that as its computing requirements gradually move to inferencing, they can use non-Nvidia chips to fulfill the growing needs. Shares are up 0.2% at HK$522.00. (sherry.qin@wsj.com)

2020 ET - Xero's annual earnings have something for both bulls and bears to get their teeth into, RBC Capital Markets analyst Garry Sherriff says. Sherriff, who has an outperform rating on the stock, points to stronger-than-expected free cashflow and earnings as key positives in the cloud-accounting software provider's fiscal 2025 result. For the bears, he tells clients in a note that Xero's expense-ratio guidance is higher than the average analyst forecast. RBC has a A$185.00 target price on the stock, which is down 1.8% at A$170.71. (stuart.condie@wsj.com)

1959 ET - The implications of Xero's higher-than-expected expense guidance for market expectations aren't immediately clear to E&P analyst Paul Mason. He tells clients in a note that, while Xero's fiscal 2026 expense-ratio guidance is higher than analysts had forecast, he simply doesn't think that forecasts had been updated for additional one-off executive remuneration costs. Mason thinks that Xero is gearing up to significantly lift U.S. marketing, but says that any clarification from management will be key to how analysts process the outlook. E&P has a neutral rating and A$156.00 target price on the stock, which is at A$173.86 ahead of the open. (stuart.condie@wsj.com)

1949 ET - Xero's expense-ratio guidance will probably move analysts to lower their fiscal 2026 Ebitda forecasts, Barrenjoey analyst Eric Choi says. He points out in a note to clients that the average analyst forecast for the cloud-accounting software provider's fiscal 2026 expense ratio was 69%. Xero's guidance is for 71.5%. However, he adds that the miss is linked to one-off executive remuneration expenses that won't repeat in fiscal 2027. Stripping those out, the underlying picture looks a lot closer to analysts' expectations. Barrenjoey has an overweight rating and A$180.00 target price on the stock, which is at A$173.86 ahead of the open. (stuart.condie@wsj.com)

1256 ET - The slowdown in travel has been felt across hotels and vacation rentals alike, but Airbnb may have an upper hand thanks to greater pricing flexibility, TD Securities analyst Kevin Kopelman and Wells Fargo analyst Ken Gawrelski tell WSJ. Airbnb and hotels said they've logged a slowdown in demand in the U.S. Airbnb's 2Q outlook came in lower than expected. But Airbnb offers a broader range of tiers and prices compared with hotel chains. Customers can easily trade down within Airbnb if they are feeling more budget-conscious, and hosts can lower prices if demand slows further, Gawrelski says. While Airbnb's booking value per night is higher on average than many hotels, that price is often split among several people staying at the same rental, Kopelman says. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

May 15, 2025 12:20 ET (16:20 GMT)

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