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

0408 GMT - Treasury Wine Estates' efforts to eliminate excess inventory sitting with its distributors scare off its bulls at Jefferies. Analysts Michael Simotas and Naveed Fazal Bawa welcome the strategy, which they think will rebase earnings and make the Australian producer more sustainable, but nonetheless downgrade their recommendation to hold from buy. Treasury Wine has shipped too much product in China and the U.S., which will take two years to address, they point out in a note to clients. They say the stock is cheap, but that management is reticent to consider the U.S. exit that would crystalize value. Jefferies cuts its target price 35% to A$5.20. Shares are down 1.9% at A$4.885. (stuart.condie@wsj.com)

0354 GMT - Bapcor looks cheap to its bulls at Jefferies, not least given the strong credentials of the Australian autoparts supplier's new CEO. Analysts John Campbell and William Richardson sound relieved that Bapcor has appointed someone with deep after-market industry experience in both retail and trade. They tell clients that Angus McKay's departure is no surprise given his failure to deliver a turnaround, with Chris Wilesmith apparently a good fit as Bapcor's fourth CEO in four years. Jefferies has a buy rating and A$2.50 target price on the stock, which is up 15% at A$2.05. (stuart.condie@wsj.com)

0339 GMT - The Singapore dollar weakens slightly against its U.S. counterpart in the Asian session ahead of the U.S. November CPI data due later today. On the one hand, "a hotter print may point to upward pressure on U.S. rates and USD," says Christopher Wong of OCBC's Global Markets Research in a research report. On the other hand, "an underwhelming print should weigh on USD," the FX strategist says. Markets still imply around 26% probability of a Fed rate cut in January, while expectations for cumulative rate reductions in 2026 are mostly steady at 60 bps, Wong adds. USD/SGD is 0.1% higher at 1.2922, LSEG data show. (ronnie.harui@wsj.com)

0337 GMT - Daiwa dismisses market jitters about an "AI bubble" and thinks tech stocks could continue to rally in 2026. The global chip upturn could extend into 2H 2027 and help sustain the bull market through the end of 2026, Daiwa analyst Rick Hsu says in a research note. Daiwa expects global chip revenue to grow 16% in 2026 and 8% in 2027, with any pullback being a mid-cycle correction. The strength in stocks linked to artificial intelligence could continue in 2026 despite moderating growth due to a high base, he notes, aided by sustained automotive and industrial chip recovery. "We stay positive on the four structural trends we have envisioned--compute, connectivity, power and memory," he says. Daiwa's top picks include TSMC, AMD and MediaTek. (sherry.qin@wsj.com)

0334 GMT - BTS Group Holdings faces earnings hit from deeper losses and lower interest income, Thanachart Securities' Saksid Phadthananarak says in a research report. "Ironically, the Bangkok Metropolitan Administration's debt repayments to BTS Group have led [the multi-industry conglomerate] to book larger losses," which are likely to persist into 2029, the analyst says. Given the high penalty interest rate on Bangkok Metropolitan Administration's debt, the repayments will likely result in a sharp drop in BTS Group's interest income. The brokerage cuts its revenue forecasts for the Thai company by 4.0% for FY 2026, 4.1% for FY 2027 and 3.5% for FY 2028. It lowers the stock's target price to THB2.50 from THB5.10 with an unchanged hold rating. Shares are 0.8% lower at THB2.50. (ronnie.harui@wsj.com)

0250 GMT - Zip's bulls at Macquarie believe that the Australian buy-now-pay-later provider can keep its net transaction margin in line with FY 2026 guidance despite elevated loss rates. The investment bank's analysts tell clients in a note that losses are rising due to the pace of total transaction value growth, but that they still see a net transaction margin within the 3.8%-4.2% guidance range. While new customers have higher loss rates than existing users, they observe that structure of Zip's products--which include an eight-instalment offering--allows Zip to quickly remove customers that don't miss payments. Macquarie keeps an outperform rating and A$4.85 target price on the stock, which is up 0.9% at A$2.965. (stuart.condie@wsj.com)

0249 GMT - Palm oil prices rise in early Asian trade, tracking higher overnight soybean oil on the Chicago Board of Trade, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Higher crude oil prices support sentiment for crude palm oil as it increases palm oil's appeal as a biofuel alternative, he says. However, he thinks the uptrend is unlikely to persist, as concerns over high stock levels persist alongside weak demand. Ng sees support for CPO futures at 3,950 ringgit a ton and resistance at 4,080 ringgit a ton. The Bursa Malaysia Derivatives contract for March delivery is higher by 43 ringgit at 4,009 ringgit a ton. (yingxian.wong@wsj.com)

0232 GMT - Treasury Wine Estates' moves to reduce distributor inventory and debt leverage are unlikely to meaningfully reduce the medium-term risks faced by the Australian producer, Macquarie analysts warn. They back the new CEO's conservative approach to inventory management in the key China and U.S. markets, while noting that change will take time. They tell clients that elevated leverage over the next two years will limit Treasury Wine's ability to respond to any unforeseen shocks. This will likely keep a discount on the stock, they add. Macquarie cuts its target price 22% to A$5.00 and maintains a neutral rating. Shares are down 3.1% at A$4.825. (stuart.condie@wsj.com)

0211 GMT - Treasury Wine Estates' stock is lacking any near-term catalysts for a re-rate despite what Morgan Stanley analysts say looks like an undemanding valuation. The MS analysts tell clients in a note that shares are trading in line with the Australian producer's post-writedown adjusted net asset value at 14 times fiscal 2026 earnings. They say that management's pivot to inventory management looks necessary, but that the need to address both excess distributor inventory and internal costs probably rule out any near-term improvement. MS cuts its target price 21% to A$5.10 and stays equal-weight on the stock, which is down 4.5% at A$4.755. (stuart.condie@wsj.com)

0206 GMT - SCB X's commercial banking business is likely to form 92%-95% of the Thai financial technology company's total net profit over the next three years, says CGS International's Weerapat Wonk-urai in a note. He notes SCB X's shares have underperformed Thailand's bank stock index up to Dec. 4, reflecting concerns that SCB X's asset quality could deteriorate if it turns aggressive on its consumer finance and digital financial services businesses. The analyst therefore expects SCB X to be conservative in its nonbank finance businesses over 2026-2028. He trims his best-case 2025-2027 EPS projections by 6.1%-11.8% on lower loan growth estimates. CGSI cuts its target price to THB150.00 from THB151.00 but retains its add rating, citing robust dividend yields over 2025-2027.Shares closed 0.7% lower at THB134.00. (megan.cheah@wsj.com)

0114 GMT - Top Glove likely has limited headroom to adjust prices in 2026, despite a supportive weaker dollar that would typically allow glove makers to pass through costs and raise prices, CIMB Securities analyst Chun Sung Oong says in a note. This is because new glove plants commissioned by Chinese manufacturers in Southeast Asia could lift global supply capacity by 30-50 billion pieces, or about 15% on year, he says. This is likely to result in oversupply, as global demand is projected to grow at a slower 10% pace next year, he reckons. Oong raises Top Glove's FY 2026-2028 earnings forecasts by 46%, 5% and 6%, respectively, to factor in lower raw material prices. CIMB maintains a hold rating on Top Glove and keeps target price at MYR0.70. Shares are 3.1% higher at MYR0.67. (yingxian.wong@wsj.com)

0104 GMT - Top Glove's earnings outlook may improve, Maybank IB analyst Wong Wei Sum says in a note. Malaysian glove makers could see near-term stability in pricing and volumes, supported by start-up issues at a major Chinese producer's Indonesia plant and weather-related disruptions in Thailand, she says. Top Glove plans to reopen four idle factories in FY 2026, raising its operating capacity to 70 billion pieces per year from 65 billion pieces in FY 2025, she notes. Wong raises Top Glove's FY 2026-2028 earnings estimates by 74%, 28% and 47%, respectively, to factor in better plant utilization rate, lower nitrile latex price and additional capacity. Maybank raises Top Glove's target price to MYR0.62 from MYR0.61, while maintaining a hold rating on the stock. Shares were recently at MYR0.66. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

December 17, 2025 23:08 ET (04:08 GMT)

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