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.

0804 GMT - MFE-MediaForEurope could potentially increase its bid for ProSiebenSat.1 Media, Equita analyst Milo Silvestre writes in a note. The Netherlands-based media broadcasting group approved the increase in the authorized share capital on Tuesday at the extraordinary shareholders' meeting. The approval is expected to provide more flexibility to the company in the takeover bid on the German media company, he says. "MFE has the possibility to increase the offer up to 8.3 euros per share," he adds. This flexibility could further increase in the event that the shareholders' meeting of July 31 also approves the new proposals, he says. MFE and ProSiebenSat shares are down 0.6% and 0.1%, respectively. ( najat.kantouar@wsj.com)

0744 GMT - Stock investors prefer tech and AI-linked stocks over defense sector stocks following the announcement of a ceasefire in the Israel-Iran conflict, XTB's Kathleen Brooks says in a note.The seven leading tech stocks, or 'Magnificent seven', of Apple, Amazon, Alphabet, Microsoft, Meta, Nvidia and Tesla continue to rise. "The Magnificent 7 are in a good position to lead U.S. stocks higher, as the market once again focuses on the AI trade," Brooks says. (miriam.mukuru@wsj.com)

0538 GMT - Broadcom's revenue in the application-specific integrated circuits space could significantly beat market expectations, HSBC analysts say as they upgrade the stock to buy from hold. They reckon Broadcom's FY26-27 ASIC revenue potential is undervalued, noting rising capex toward ASIC projects. Trends suggest scope for higher pricing premiums, too. "We believe we now have better visibility into the ASIC project pipeline and expect Broadcom to have up to seven customers by FY27." They think ASIC revenue will start ramping more meaningfully from FY26, and continue into FY27. New customers in both FY26 and FY27 will help that momentum. The brokerage raises the stock's target to $400 from $240. Shares closed at $263.77. (megan.cheah@wsj.com)

0420 GMT - Chinese demand for chip equipment is likely to remain resilient at $45 billion annually as the country pushes to localize chip production, Daiwa analysts say in a research note. China will likely focus on pursuing advanced packaging to improve chip performance, which in turn will spur demand for chip equipment, they say. The chip-equipment localization rate could rise to 21%-26% over 2025-2026 from 15% in 2024, they add. The country's advanced logic chips are in short supply due to U.S. export restrictions. Daiwa estimates that China's 7-nanometer and below capacity currently accounts for about 5% of global capacity. Should there be any domestic breakthrough in advanced chips, China's demand upside for chip equipment will be significant, the analysts say. (sherry.qin@wsj.com)

0258 GMT - E&P analyst Paul Mason reckons that Melio's new syndication network was probably what elevated it above other bill-payment providers in Xero's eyes. Mason writes in a note that accounting-software provider Xero flagged Melio's partnership with Fiserv while announcing the deal. He thinks that Xero might have a long-term aspiration to get broader distribution of its core accounting product from Fiserv and its Clover subsidiary. The price looks high but makes sense if Xero can generate strategic synergies on distribution, Mason adds. RBC has a last-published neutral rating and A$186.00 target price on the stock, which is in a halt at A$194.21. (stuart.condie@wsj.com)

0251 GMT - Krafton appears well-positioned to build a global intellectual-property ecosystem with its acquisition of Japanese advertising-animation company ADK Holdings, say Nomura analysts Angela Hong and Won Kang. The KRW710-billion purchase deal aligns with the South Korean videogame developer's push to become a global IP powerhouse, the analysts write in a note. They note Krafton management's intent to leverage ADK's production and distribution network to extend the lifecycle of its flagship survival shooter game "PlayerUnknown's Battlegrounds," or PUBG, and other game IPs across animations, web cartoons, and films. Nomura is positive about Krafton's steadily growing free cash flow that ensures its ample funding capacity for strategic investments or mergers and acquisitions. (kwanwoo.jun@wsj.com)

0245 GMT - Xero's material acquisition of Melio plugs a gap for U.S. bill payments and makes strategic sense, according to its bull at RBC. Analyst Garry Sherriff tells clients in a note that the move aligns with Xero's aim of expanding its U.S. presence, although bill-payment platform Melio's loss-making status makes it hard to forecast Xero's cash-flow and profitability. He acknowledges that accounting-software provider Xero has a mixed track record on M&A, and warns that it will take time for the intricacies of the deal to become clear. RBC has an outperform rating and A$210.00 target price on the stock, which is in a halt at A$194.21. (stuart.condie@wsj.com)

0240 GMT - Xero's bull at Citi likes the accounting-software provider's acquisition of Melio for several reasons, including the potential distribution channel it brings. Analyst Siraj Ahmed tells clients in a note that Melio's recently launched syndication offering could accelerate Xero's accounting customer acquisition via banking partners. Shares might initially trade weaker but the acquisition will help Xero scale, he says. Ahmed adds that Xero's guidance for fiscal 2028 revenue to be more than double that of fiscal 2025 implies a 15% upgrade to the average analyst forecast. Citi has a last-published buy rating and A$210.00 target price on the stock, which is in a halt at A$194.21. (stuart.condie@wsj.com)

0145 GMT - Axiata's plans to sell its telecom tower unit Edotco could meaningfully improve its balance sheet and buoy investor sentiment, says Hong Leong Investment Bank analyst Toh Woo Kim in a note. Assuming a potential Khazanah-Employees Provident Fund consortium acquires Axiata's 63% stake at a $3.5 billion valuation, proceeds could be around 6.3 billion ringgit, he says. Combined with $475 million in payments from the XL-Smartfren merger, this would likely help nearly clear its holding company debts and reduce the net debt-to-Ebitda ratio to about 1.0X from 3.0X in 1Q, he adds. While near-term earnings may remain muted, Hong Leong views its monetization as a key catalyst to unlock value. It reiterates its buy rating with an unchanged target price of MYR2.50. Shares are 0.5% higher at MYR2.11. (yingxian.wong@wsj.com)

0132 GMT - Tech stocks should get a further lift from the Iran-Israel ceasefire as risk-on trades return in full force, Wedbush Securities analysts say. "We believe new highs for the markets and tech sector could be on the horizon this summer with this Iran situation now likely settling into a calmer negotiation stage," Dan Ives and colleagues write. While there will still be risk, tech investors have gotten a bullish "one-two punch" of news. There is a growing view that the opportunity is ripe for the Middle East to embrace the tech and AI boom, led by Saudi Arabia and UAE, Wedbush says. It recommends AI heavyweights like Nvidia and Palantir, and names Palo Alto and CyberArk among its cybersecurity picks. (fabiana.negrinochoa@wsj.com)

0006 GMT - Spark New Zealand is considering selling a stake in its data center business. UBS thinks a 51% interest could be worth NZ$400 million-NZ$600 million, depending on the premium paid for majority control. Analyst Phil Campbell rates Spark as a buy. He thinks investors are underestimating the value of Spark's data-center business and the potential for special dividends. Both of these could help to close some NZ$0.50/share of the value gap to where Spark's stock is currently trading. UBS thinks it makes sense for Spark to partner on data centers because it would allow the company to reduce debt and refocus on its telecom business. (david.winning@wsj.com; @dwinningWSJ)

2328 GMT [Dow Jones]--Australian equities are poised to open slightly higher, getting tailwinds from Wall Street where stocks climbed on Israel and Iran's cease-fire. ASX futures are up by 0.1%. The Dow Jones Industrial Average earlier climbed 1.2%, while the S&P 500 gained 1.1% and the Nasdaq Composite rose 1.4%. Ahead of the open, accounting-software provider Xero said it will acquire bill-pay platform Melio for an initial $2.5 billion, a deal it says will significantly accelerate U.S. revenue growth. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

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

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