The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0810 GMT - Top Glove's better operating conditions and rising orders prompt CIMB Securities to remain cautiously optimistic on the glove maker's outlook. However, a weaker dollar and new Chinese glove plants in Southeast Asia could further pressure the sector's long-term demand-supply balance, analyst Walter Aw Lik Hsin says in a note. A key event to watch is the U.S. tariff decision on China, with the 90-day pause on reciprocal tariffs set to expire Nov. 10, he says. Even if higher tariffs are imposed, any trade diversion to Malaysian manufacturers will likely be limited, as China accounted for only about 3% of U.S. medical glove imports as of July, he adds. CIMB cuts its target price for the stock to MYR0.70 from MYR0.77, while maintaining its hold rating. Shares are 1.5% higher at MYR0.68. (yingxian.wong@wsj.com)

0223 GMT - Top Glove may continue to face stiff competition as Chinese glove makers expand into Southeast Asia and adopt aggressive pricing strategies to regain U.S. market share, Maybank IB analyst Wong Wei Sum says in a note. Competition is expected to intensify with new Chinese capacity coming online from November, but should begin to stabilize by FY 2027 as the additional supply is absorbed, she says. Management targets 20%-30% sales volume growth in FY 2026 and expects margins to improve further as plant utilization reaches 80%-90%. Maybank maintains a sell rating on Top Glove and keeps its target price at MYR0.61. Shares are 3.7% higher at MYR0.70.(yingxian.wong@wsj.com)

0158 GMT - After a painful few years, there are clear signs the worst may now be behind retirement-village operator Ryman Healthcare, says Forsyth Barr. Ryman's 2Q update was strong. Total sales volumes of occupation rights agreements are now tracking ahead of Ryman's guidance of 1,100-1,300 in FY 2026. So, Ryman expects to update this range in late November when announcing its 1H earnings. "The current resales cadence should slow the build-up of bought-back stock materially, reducing a key cash flow drag and further de-risking the investment case," analyst Aaron Ibbotson says. "Ryman has a long way back, but for the second time in three months, we are upgrading our estimates." Forsyth Barr now expects volumes of 1,432 in FY 2026. It retains a neutral call on Ryman's stock. (david.winning@wsj.com; @dwinningWSJ)

0147 GMT - The ground appears fertile for more M&A activity in New Zealand, says Forsyth Barr. Among the core reasons: a falling NZD, declining interest rates, early signs of a cyclical recovery and pockets of attractive company valuations. Analyst Matt Montgomerie says deal interest could be strong in undervalued cyclical stocks and cash-generative small caps. "With a focus on asset valuation support, SkyCity Entertainment and Oceania Healthcare in particular stand out," Forsyth Barr says. "There are clear reasons these trade at discounts to book, but the upside is large should these concerns subside." It says other key opportunities include Sky Network TV, Scott Technology and Warehouse. (david.winning@wsj.com; @dwinningWSJ)

0118 GMT - Top Glove's shares now offer a more balanced risk-reward profile following a recent correction and an improving sales outlook, Hong Leong IB analyst Chee Kok Siang says in a note. The glove maker targets monthly sales of about 12.9 billion units in 1Q FY 2026, up 10% on quarter, with average selling prices expected to be stable, he says. Raw material costs for natural and nitrile rubber should stabilize, while natural gas tariffs may decline about 4%, he says. Coming 1Q earnings could be stronger, supported by better operating leverage and lower costs, though uncertainty in the supply-demand balance heading into 2026 lingers, he adds. Hong Leong upgrades Top Glove to hold from sell and raises its target price to MYR0.67 from MYR0.60. Shares are 3.0% higher at MYR0.69. (yingxian.wong@wsj.com)

0040 GMT - Riverstone's 3Q results likely improved sequentially on higher demand and softer input costs, says UOB Kay Hian's Heidi Mo in a note. The Singapore-listed glove maker has projected sales volume of its cleanroom gloves to rise 10% on quarter, driven by robust demand from semiconductor and AI-related data storage industries, Mo notes. The average selling prices of these gloves are stable while material costs have softened, which could boost margins in 3Q, she says. Riverstone's dividends are likely to remain attractive with a projected 7.3% dividend yield in 2026, the analyst adds. UOB KH lifts its rating on the stock to buy from hold and raises its target to S$0.98 from S$0.71. Shares last closed 2.4% lower at S$0.805.(megan.cheah@wsj.com)

1102 GMT - AstraZeneca's multi-use cancer drug Enhertu is on course to become the new benchmark treatment for early-stage breast cancer, UBS analysts write in a note. Enhertu sales could peak at $1.5 billion after pivotal pre- and post-surgery trials, the analysts say. The medication showed significant benefits and a strong safety profile, suggesting it could displace Roche's Kadcyla as the top treatment for early breast cancer, the analysts add. It remains unclear how Enhertu's tolerability compares to Kadcyla's, and results show it is only effective in combination treatments, UBS says. Still, the analysts see Enhertu on a clear path toward cementing its prominent role across pre- and post-surgery care. Shares trade flat at 128.08 pounds. (william.gray@wsj.com)

(END) Dow Jones Newswires

October 10, 2025 04:20 ET (08:20 GMT)

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