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

1556 GMT - Domino's Pizza sees the same consumer spending pressures that weighed down 2024 to raising challenges again this year, Chief Executive Russell Weiner says on an analyst call. After missing Wall Street's profit and revenue estimates for 4Q, Weiner expects value will be a top priority among consumers in 2025. That could make the 3% long-term growth in U.S. comp store sales the company projected difficult to achieve. It's also taking longer for the partnership with Uber Eats to meet its revenue goal, which was $1 billion in revenue by the end of 2026, Weiner says. Domino's Pizza falls 2.6%.(katherine.hamilton@wsj.com)

1408 GMT - CBOT grain futures are mostly lower, with traders reacting to plans from the Trump administration regarding higher fees of up to $1 million for each Chinese-built ship calling on U.S. ports. The fee would be based on the size of a company's Chinese fleet--which given the portion of Chinese-built ships that are used by major shipping providers like Maersk--would impact freight prices for U.S. importers and exporters, according to analysts. CBOT corn and wheat are down early, by 0.6% and 1.7%, respectively. Soybeans are up 0.2%. (kirk.maltais@wsj.com)

1257 GMT - Germany's new government is likely to be a lot more pragmatic toward supporting the local automotive industry, BMI analysts say in a webinar. They also expect increased EU discussion on the transition towards electric vehicles (EVs). Germany's automotive industry has been under significant pressure in recent years as the auto market has leaned increasingly towards electrical vehicles. Its three largest car makers struggle to recover from lower sales volumes since 2019 and continue to lose market share in China, the analysts say. While direct EV subsidies under the new government are unlikely, new launches and competitive EV pricing should stimulate demand, BMI says. (helena.smolak@wsj.com)

1217 GMT - Rheinmetall's stock price could rise further, driven by strong momentum and the company's ability to align its products with Europe's defense needs, Deutsche Bank analysts say in a research note. Deutsche Bank lifts the target on the German arms manufacturer's stock to 1,040 euros from 780 euros. The analysts expect the market's focus to shift to capacity build-out and the implications this has for the company's supply chain. "Thanks to a deep vertical integration across several key products, we see Rheinmetall having an advantage in building additional capacity," the bank says. Shares are up 3.5% at 925.80 euros. (maitane.sardon@wsj.com)

1201 GMT - Citi has a positive view on the European auto sector, but there are concerns about Stellantis, the bank says. Shares have halved since peak, analysts Harald C Hendrikse and Soumava Banerjee note. A once 13% adjusted operating income margin business could report as low as 0% margin for the second half of 2024, they say. Investors don't know who the next CEO will be, or therefore how the company strategy will develop, they add. It is also difficult to understand everything that has gone wrong with Stellantis or how to fix it, Citi says. "On that basis, how could we recommend Stellantis to investors?" Citi closes its positive short-term view on the stock and keeps at neutral. Shares trade 0.3% higher at 13.52 euros. (dominic.chopping@wsj.com)

1143 GMT - Renault remains a strong investment option in the sector, Berenberg analyst Romain Gourvil writes. Unlike most of its European peers, the carmaker remains insulated from some near-term industry concerns, such as tariffs, capacity-related pressure or China, the analyst says. Product momentum remains strong in 2025 due to the full availability of its 2024 launches, adding to a promising product offensive. "This should sustain mix in the coming quarters, partly mitigating further pricing normalization and potential regulatory cost pressure in 2025." The company's automotive margins in the second half of 2024 were slightly below market expectations, but this was largely attributable to heightened commercial activity and product launch costs. Berenberg lifts its price target for the stock to 58 euros from 57 euros and keeps its buy rating. Shares trade 0.4% higher at 48.95 euros. (dominic.chopping@wsj.com)

1132 GMT - The victory of Friedrich Merz and the centre-right Christian Democrats in Germany prompted European defense stocks to rise in Monday trading. The election result increases the prospect of higher defense spending, with Merz in particular stating that he wanted more "independence" from the U.S. Expectations for an initial public offering of defense supplier KNDS, which makes the Leopard tank, also sent the sector higher. KNDS is a major shareholder in Renk, whose shares are up by 5.3%. Elsewhere, shares in German arms manufacturer Rheinmetall were boosted by an upgrade to buy from Deutsche Bank and rises 3.0%. Domestic rival Hensoldt is up 5.2% and European peers such as Thales, Leonardo, and BAE Systems rise 1.7%, 1.0% and 2.4%, respectively. (edward.frankl@wsj.com)

1031 GMT - Shares of Uber and DoorDash edge up in premarket trading after Amsterdam-listed investment group Prosus agreed to buy Just Eat Takeaway.com for $4.3 billion. Shares in Uber are slightly up by 0.16% while Doordash shares are up by slightly more than 1%. News of the Prosus-Just Eat Takeaway deal also lifts shares of other food delivery companies in Europe. Just Eat Takeaway's British rival Deliveroo and German peer Delivery Hero trade about 7% and 8% higher, respectively. (pierre.bertrand@wsj.com)

0815 GMT - SATS Ltd. may face earnings volatility over the next one to two years stemming from global cargo demand becoming more sensitive to escalating trade tensions, CGS International analysts Tay Wee Kuang and Lim Siew Khee say in a note. Management noted some knee-jerk order cancellations in January as the U.S. mulled the repeal of the de minimis provision for low-value parcels from China, they say. The brokerage cuts its FY 2025-FY 2027 EPS forecasts for the air-cargo handler by 4.1%-7.5% amid an uncertain macroeconomic outlook. It also lowers its target to S$4.35 from S$4.40 while maintaining an add rating. Shares are last at S$3.20. (hoishan.chan@wsj.com)

0743 GMT - Singapore Airlines is likely to enjoy continued healthy passenger and cargo demand, OCBC Investment Research's Ada Lim says in a research report. SIA posted improved operating results in 3Q FY 2025 such as passenger-flown revenue growing 1.7% on year on the back of a record 10.2 million passengers flown, the analyst notes. Also, SIA's cargo-flown revenue rose 9.7% on year in 3Q on higher cargo loads driven by robust year-end demand from e-commerce, the analyst adds. Management is optimistic that demand for SIA's passenger and cargo segments will remain robust in 4Q. OCBC raises the stock's fair value estimate to S$6.50 from S$6.30, with an unchanged hold rating. Shares are 1.7% higher at S$6.66. (ronnie.harui@wsj.com)

0220 GMT - MISC Bhd.'s appears to be a defensive pick, given its recurring and stable earnings and cash flows, Maybank IB analyst Jeremie Yap says in a note. He upgrades MISC's rating to buy from hold, citing its emerging value at current valuations and a decent dividend yield at 5.0%. However, the analyst expects persistently weak liquefied natural gas shipping rates to weigh on earnings due to vessel oversupply and delays in liquefaction plant construction. MISC plans to replace expiring contracts with new builds and add 11 new LNG vessels in 2026, Yap notes. He lowers MISC's 2025-2026 earnings forecasts by 3% and 4%, respectively, following an unexpected additional cost provision in 4Q 2024. Maybank raises MISC's target price to MYR8.34 from MYR8.09. Shares are 0.4% lower at MYR7.12. (yingxian.wong@wsj.com)

0143 GMT - MISC Bhd.'s 2025 earnings outlook could be supported by a stronger petroleum shipping market, driven by high ton-mile demand and minimal fleet expansion, Hong Leong IB analyst Brian Chin says in a note. Very large crude carrier tanker rates surged in 1Q following tighter U.S. sanctions on Russian crude, which could benefit petroleum shipping markets, he says. MISC's liquefied natural gas segment may face pressure from oversupply and weak spot rates. However, earnings should improve as offshore segment contributions normalize after the cost provisions in 4Q of 2024 and stronger petroleum segment performance, he says. Hong Leong upgrades MISC's rating to buy from hold after the recent share price correction and raises the target to MYR8.11 from MYR7.99. Shares are 0.6% lower at MYR7.11. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

February 24, 2025 12:20 ET (17:20 GMT)

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