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

0941 ET - Investors are bracing for another soft quarter for PepsiCo as consumption trends in the U.S. appear to have deteriorated for snacking, JPMorgan analysts say in a research note. At the same time, beverages remain lackluster, international has a smaller contribution in the first quarter, and productivity phasing and investments will weight on margins, the analysts say. "While valuation is attractive, the lack of visibility to a rebound in snacking, coupled with the Make America Healthy and Again [movement] and GLP-1 risk keep us on the sidelines," the analysts add on the political and weight-loss medication pressures. JPMorgan raises its target price to $159 a share from $158 a share previously. PepsiCo shares fall 0.9% to $141.62. (sabela.ojea@wsj.com; @sabelaojeaguix)

0933 ET - Coca-Cola's upcoming results will likely reflect a moderating consumption environment in the U.S., JPMorgan analysts say in a research note as they cut their 1Q estimates slightly. The beverage maker is a crowded long stock that is not immune to tariffs and macro headwinds, but it is a relatively more defensive stock, the analysts say. The U.S. represents only 17% of Coca-Cola's systemwide volumes, the analysts note. "We believe Coca-Cola can sustain its relative premium to peers given its defensive nature, geographic diversification, limited direct tariff impact, and ability to navigate dynamic operating environments," the analysts say. (sabela.ojea@wsj.com; @sabelaojeaguix)

0923 ET - Underlying market fundamentals for Canada's housing developers are positive but revenue and margin pressures are expected to continue throughout 2025, Morningstar DBRS says. Canada needs an additional 6 million homes by 2030 to restore housing affordability, keeping housing among the top political priorities as the federal election approaches. Morningstar's Margaret Rabba says industry and economic headwinds are expected to hinder housing development this year and beyond and developers will still need to balance squeezed profitability and difficulty in planning against preparing for an eventual market rebound. Inflationary pressures from U.S. tariffs might be offset by government actions to reduce the fees and taxes that contribute to home prices, she notes. (robb.stewart@wsj.com; @RobbMStewart)

0853 ET - CarMax is in a position to take market share and capitalize on strengthening used car sales due to potential new car tariffs, Wedbush analysts say in a research note after meeting with the car retailer's management team. The company has been adding share in the last three quarters and should continue to do so now that its omnichannel rollout is complete with a competitive price strategy, the analysts say. Overall, CarMax's long-term growth potential is solid even if it decided to remove the timeframe to achieve its long-term targets due to macro uncertainty, the analysts say, adding that they continue to believe Carmax can reach its sales and market share goals. (sabela.ojea@wsj.com; @sabelaojeaguix)

0833 ET - The presentations delivered at Imperial Oil's recent investor open house in Toronto have renewed RBC Capital Markets' confidence in the energy company's outlook discipline and shareholder returns. What stood out most to RBC was the power of Imperial's relationship with ExxonMobil and the multitude of initiatives, especially in the upstream, underway that are aimed at enhancing efficiency and margin capture. Imperial affirmed 2025 production of 433,000-456,000 boe/day and is looking at 2026-29 output rising to a range of 470,000-480,000 boe/day. RBC maintains a sector perform call and C$101 one-year price target; shares were last at C$88.37. (robb.stewart@wsj.com)

0825 ET - Phillips 66 urges shareholders to vote against Elliott Investment's director nominees. ConocoPhillips alum Brian Coffman has never served on a public company's board, the company says. Ex-ConocoPhillips CFO Sigmund Cornelius served on the boards of three companies that have filed for bankruptcy and has a track record of errors that led to company investigations, it says. While Targa Resources founder Michael Heim was a director of Evolve Transition Infrastructure, its total shareholder return declined 93%, according to Phillips 66's letter. Meanwhile, longtime Citadel analyst Stacy Nieuwoudt has no experience as an operator in the energy industry and resigned as director of Independence Contract Drilling months before it filed for bankruptcy, Phillips 66 says. (dean.seal@wsj.com)

0818 ET - The markets and the tech sector both need the U.S. and China to find a path forward on tariff negotiations so they can know what the rules of the trade game are looking ahead, Wedbush analysts say in a research note. If the White House doesn't get some deals done quickly, markets, the 10-year yield, the U.S. dollar, the price of gold and the economy will all start taking divergent paths in the coming weeks and months, the analysts say. They think this is a critical week ahead to get some trade deals on the board, because Wall Street has stopped caring about words and comments around "deal progress." (dean.seal@wsj.com)

0809 ET - Investors are underestimating the Ebit pressures that Amazon will go through as a result of its investment cycle on supply chain, logistics and AI, among other bets, Raymond James analysts say in a research note. While there is a positive long-term potential from these investments, the analysts say they lack sufficient visibility in the investment levels/return on investment in 2025 and 2026. "Improving monetization momentum would make us more constructive, while higher-than-expected investments could make us more cautious." Raymond James lowers its recommendation on the stock to outperform from strong buy and cuts its target price to $195 a share from $275 a share previously. Shares fall 1.7% to $169.55 in pre-market trading. (sabela.ojea@wsj.com; @sabelaojeaguix)

0747 ET - Salesforce is neglecting its core business in an effort to pursue a premature AI opportunity, changing the nature of the company enough for us to downgrade it, say D.A. Davidson's Gil Luria and Clark Wright in a research note. The business-software provider focus on Agentforce does make strategic sense based on the transformative potential of AI, but betting the whole company on this effort may be at the expense of the other 98% of the company's business, say the analysts. "We expect the catalyst for underperformance will be further deceleration in the organic growth of the non Data/AI clouds," say the analysts, who downgrade the company to underperform. Shares are off 1.8% in pre-market trading. (denny.jacob@wsj.com; @pennedbyden)

0735 ET - The market is missing many of Bath & Body Works' self-help drivers in the current macro economic environment, Deutsche Bank analysts say in a research note after meeting with the company's management. About 80% of the retailer's supply chain is based in the U.S., with 90% located within North America, and the company has a stronger balance sheet and a healthy margin structure, the analysts say. "We came away constructive on Bath & Body Works as it executes across multiple growth drivers --including adjacency expansion, product innovation, strategic collaborations and a stronger loyalty engine --and see a particularly favorable risk/reward at current levels," the analysts add. (sabela.ojea@wsj.com; @sabelaojeaguix)

0724 ET - Parkland's management doesn't think the slate of board candidates presented by its largest shareholder have the experience to run the business properly. The gas station operator says Simpson Oil, which owns nearly 20% of the company's shares, wants to put in its own candidates to "seize full control of Parkland without offering a control premium." The company says that the candidates lack experience and qualifications to oversee a "complex strategic review." Simpson Oil last week said Parkland is delaying leadership change, but Parkland on Monday disputed Simpson Oil's claims saying its "refreshed, experienced, and independent board is the right team to lead the company through its ongoing strategic review process." (adriano.marchese@wsj.com)

0712 ET - Longtime Tesla bull Dan Ives of Wedbush isn't turning tail on the EV maker yet, but he says that Elon Musk needs to leave the federal government, take a major step back from his work for DOGE and get back to being Tesla's CEO full time. During Tesla's earnings call on Tuesday, Musk is expected to address his role in the Trump administration and answer questions about any potential plans to stay in an advisory role at the White House, Wedbush analysts say in a research note. "If Musk leaves the White House there will be permanent brand damage, but Tesla will have its most important asset and strategic thinker back as full time CEO to drive the vision and the long term story will not be altered," the analysts say. Shares are down 3.8% at $232.13 premarket. (dean.seal@wsj.com)

(END) Dow Jones Newswires

April 21, 2025 09:41 ET (13:41 GMT)

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