The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0641 GMT - Lanxess's profit warning earlier this week, though positive, lacked an upside edge, Berenberg analysts Andres Castanos-Mollor and Sebastian Bray say in a research note. The German specialty chemicals company said Monday that it expected adjusted earnings for 4Q above market views thanks to a stronger-than-expected December, driven by customers prebuying products. This implies the company could face some degree of pressure on early 2025 volumes, the analysts say. It coincides with the company reiterating that macroeconomic conditions haven't improved going into 2025. Nevertheless, Lanxess remains on the path to recovery after its 2023 sales slump, Berenberg says. The bank trims its target price on the stock to 31 euros from 32 euros previously. (pierre.bertrand@wsj.com)
0629 GMT - True Corp.'s normalized earnings are likely to triple in 2027 compared to 2024 on some tailwinds, Thanachart Securities' Nuttapop Prasitsuksant says in a research report. One factor is the Thai communications conglomerate's ongoing cost reductions from redundant network assets and the downsizing of service shops and headcount, the analyst says. Also a tailwind is the continuing average-revenue-per-user recovery on easing competition due to industry consolidation, the analyst adds. A third tailwind is cost savings from a spectrum auction later this year. The brokerage forecasts the company's EPS growth at 89% in 2025 and 38% in 2026. It raises the stock's target price to THB15.00 from THB13.50 with an unchanged buy rating. Its shares are 0.8% higher at THB12.00. (ronnie.harui@wsj.com)
0608 GMT - Nanofilm Technologies International's 2024 net profit may come below consensus expectation of S$11.4 million, CGS International's William Tng says in a research report. The brokerage cuts its 2024 net profit forecast for Nanofilm to S$5.7 million from S$9.2 million on likely start-up losses from the company's India and Vietnam production sites. The nanotechnology solutions provider's subsidiary AxynTeC is also anticipated to be in the red for 2024 as Nanofilm sought to expand its presence into Europe, the analyst says. The company's joint-venture Sydrogen Energy also likely remained loss-making in 2H of 2024, the analyst adds. The brokerage cuts the stock's target price to S$0.63 from S$0.69 and maintains a reduce rating. Shares are 3.25% lower at S$0.745. (ronnie.harui@wsj.com)
0530 GMT - Oberoi Realty is retained at a buy by Nomura on likely strong business development as the company continues to generate robust cash flows thanks to its ready inventory worth around INR80 billion, the brokerage's Akash Gupta says in a research report. Also, the Indian real estate developer's pre-sales should post 40% CAGR in FY 2026-2027, the analyst estimates. For FY 2026, the management has said that planning and permissions for the Sector 58 project in Gurugram and its Adarsh Nagar project remain on track, the analyst notes. However, Nomura lowers the stock's target price to INR2,300.00 from INR2,500.00 to reflect a slightly weaker offtake for the company's 360 West and OGC Thane projects. Shares are 6.3% lower at INR1,739.65. (ronnie.harui@wsj.com)
0520 GMT - The Chinese stock market could see a rebound before the Two Sessions meetings in early March, analysts at Daiwa Capital Markets write in a note. Despite tariff threats, Trump didn't impose them immediately, while his goodwill gesture toward China by his willingness to visit the country later this year and his phone call with President Xi signals a good start to U.S.-China relations in Trump's second term, Daiwa says. This should help market sentiment recover in the near term, and investors have showed interest in "riding on China's stimulus tailwinds" after the Lunar New Year holiday, the investment bank adds. The next Politburo meeting will be a key event to watch, along with any possible tax reforms and legislation to promote the private economy, Daiwa says. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
January 22, 2025 01:42 ET (06:42 GMT)
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