The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0818 GMT - Ericsson's first quarter results are well above expectations with stronger-than-expected margins across the board, Kepler Cheuvreux analyst Sebastien Sztabowicz writes. Comparable sales were flat, but the adjusted EBITA margin increased by 300 basis points to 12.6%, which is 390 basis points above consensus. Free cash flow of 2.7 billion Swedish kronor compares to the 1.7 billion kronor expected. "While the RAN market is still expected to stabilize in 2025, there is still some downside in the coming months, depending on the final outcome of the U.S. tariffs." The bank reiterates its reduce rating and 80 kronor target price. Shares rise 7.2% to 78.86 kronor. (dominic.chopping@wsj.com)

0749 GMT - Ericsson's second-quarter outlook reads better than consensus in networks profitability, Morgan Stanley analysts write. The first quarter networks gross margin was 51% versus guidance of 47%-49%. For the second quarter, the networks gross margin is expected to be in the range of 48%-50% against consensus at 47.3%. "Overall...this implies that guidance on mobile networks second-quarter EBITA is about 4% higher than consensus second-quarter expectations." Sales were 1% below expectations, whilst gross income and EBITA beat by 5% and 42% respectively, the bank says. The profitability beat came from the three main divisions, particularly mobile networks, benefiting from product mix, market mix (skewed to North America) and cost actions." Shares rise 7.5%. (dominic.chopping@wsj.com)

0707 GMT - Ericsson shares should react positively to results that beat estimates across the board, with full-year consensus earnings estimates likely to rise by a low-double-digit percentage, JPMorgan analysts write. The results were driven by strong margin improvements in all its business units, they say. The networks business was very strong, with the gross margin improvement the key driver. A key part of the very strong margin was strength in the U.S. business, at least partially driven by customers buying in anticipation of tariffs. "With tariffs now in place but not substantially impacting Ericsson's business yet, there may be risk of weaker U.S. sales in the second quarter or beyond and this could have implication for future margin." (dominic.chopping@wsj.com)

0437 GMT - Trump's upcoming tech tariffs will likely focus on the semiconductor and display components of imported tech products, Jefferies analysts say in a research note. Using iPhone 16 Pro Max as an example, Jefferies estimates that only 22% of its semiconductor and display-related cost is currently sourced from the U.S. Trump's long-term objective is likely to increase that figure to 100%, they say. The analysts note that these contents are currently manufactured by TSMC, Samsung and SK Hynix--expecting Samsung and SK Hynix to raise their U.S. investments, following TSMC's lead. "However, we see any semiconductor tariffs in the above form likely to be implemented on a 'phased-in' basis, with one year of exemption and then escalating over the next 3 years," they add. (sherry.qin@wsj.com)

0234 GMT - The ongoing U.S. tariff uncertainties could weigh on Malaysia's economy, particularly through supply chain disruptions and weakened external demand, Public IB analyst Eltricia Foong says in a note. While most of Malaysia's exports to the U.S., comprising largely electronics and machinery, are exempt for now, uncertainty over the duration of these exemptions may dampen investor confidence, she reckons. Foong lowers Malaysia's 2025 GDP forecast to 4.2% from 4.9%, citing trade risks and market volatility. Public IB maintains its KLCI end-2025 target at 1630, favoring stocks like CIMB Group, Telekom Malaysia, Tenaga Nasional and Gamuda. The KLCI is 0.1% higher at 1482.97. (yingxian.wong@wsj.com)

0152 GMT - Chinese President Xi Jinping's state visit to Malaysia could strengthen bilateral trade ties, especially as both nations may look to diversify away from the U.S., MIDF Research says in a note. The visit comes at a critical time amid rising trade tariffs and global economic tensions, the research house says. Xi's visit may boost Belt and Road initiatives in Malaysia and enhance connectivity and regional integration, it reckons. Malaysia's strong semiconductor and electronics sectors may continue to attract Chinese investment, driven by ongoing supply-chain diversification, it adds. MIDF notes that sectors likely to benefit include construction, technology and property, while tourism-related companies such as Capital A may also gain from stronger bilateral relations. (yingxian.wong@wsj.com)

2218 GMT - The impact that President Trump's tariffs is having on the economic outlook will hurt technology new investments, DA Davidson analysts say in a research note. The companies will either pause or reconsider new investments given the uncertainty around payback in a weakening economy. Overall, we are past the point of no return on a material shock to the global economy this year, the analysts say as they assume a base case scenario of one or two quarters of negative gross domestic product in the U.S. this year. "We prefer to rip the bandaid across the board now, and hope to find out we were too harsh, to the possibility of death by a thousand cuts." DA Davidson cuts share price targets on tech giants including Apple, Amazon.com, Nvidia, Oracle, Meta Platforms and Alphabet.(sabela.ojea@wsj.com; @sabelaojeaguix)

1828 GMT - While Apple isn't fully out of the woods after Trump announced a tariff exemption for tech products, the worst case scenario of a continuing "tit-for-tat" trade war escalation will likely no longer take place, KeyBanc analysts say in a research note. "We find it difficult to argue for further downside," they say, as they upgrade Apple to sector weight from underweight. But the analysts think consensus expectations are still too high, particularly looking out to FY26, "which call for an accelerating growth profile," they say. Apple rises 3.6% to $205.36. (sabela.ojea@wsj.com; @sabelaojeaguix)

1647 GMT - Toast's agreement to implement its technology at Applebee's roughly 1,600 locations isn't necessarily significant to its base of 134,000 locations, D.A. Davidson analysts say in a research note. But the deal is still Toast's biggest chain win so far, and proves the company can continue gaining traction with larger restaurant brands, they say. The analysts say moving up-market to chains with over 500 units will be necessary for Toast to maintain strong growth over the next three to four years. "We expect the company will have success signing larger chains and larger wins should help the company drive revenue growth and further leverage fixed costs," the analysts say.(kelly.cloonan@wsj.com)

1623 GMT - Apple stock could be seen as a relative safe haven, BofA Securities analysts say in a research note. The iPhone maker is expected to manage its supply chain to minimize the impact of tariffs, the analysts say. If tariffs rates do stand, the analysts would expect an EPS impact to its 2026 results of 41 cents. However, despite the tariff headwinds, analysts would view any potential cut to EPS as relatively muted compared to the potential global disruption that could be caused by an escalating trade war. Shares rise 2.6% to $203.18. (sabela.ojea@wsj.com; @sabelaojeaguix)

1616 GMT - NATO's recent purchase of Palantir's Maven system shows European governments are further accelerating AI initiatives alongside their U.S. counterparts, Wedbush analysts say in a research note. The company appears positioned to gain from the AI focus in both regions and will likely see a bigger market share in U.S. federal defense spending as the government continues its efficiency aims, the analysts say. Palantir is "in the sweet spot to benefit from a tidal wave of federal spending on AI across North America and Europe," the analysts say, adding the company's unique software approach makes it well-positioned to benefit in a more disciplined spending environment. (kelly.cloonan@wsj.com)

1606 GMT - The tariff exemption for smartphones, PCs, servers and other technology imports from the 145% tariff provides relief for Apple, UBS analysts say in a research note. The iPhone maker would have faced significant economic headwinds that could have reduced its earnings power by 30% given that its supply chain is heavily resilient on China despite its diversification efforts over the past decade, the analysts say. While India has been a growing partner for Apple, this assembly partner could theoretically account for only roughly 10% to 15% of iPhone builds or 25 million to 30 million annually. Overall, UBS no longer expects Apple to raise prices for iPhones in the near term. "However, if tariffs are reinstated at prior levels, we would expect a price increase despite the risk of demand destruction." Shares rise 2.3% to $202.76. (sabela.ojea@wsj.com; @sabelaojeaguix)

(END) Dow Jones Newswires

April 15, 2025 04:20 ET (08:20 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.