0357 GMT - Citi remains bullish on Service Stream's potential to secure Australian defense contracts. Analyst William Park tells clients in a note that last week's announcement by engineering company Downer EDI of a six-month contract extension with Australia's defense department suggests that contract award timing is intact. Park says Service Stream's property and asset services unit is well positioned to secure some packages, which could serve as a potential catalyst for the stock. Citi maintains a buy rating and a target price of A$2.00 on the stock, which is down 1.4% at A$1.75. ([email protected])
0317 GMT - Norway's giant sovereign-wealth fund intends to vote against a resolution seeking an independent review of Rio Tinto's dual-listed structure, according to the website of Norges Bank Investment Management, the fund's manager. Norges Bank doesn't provide a reason for its decision, which aligns with a recommendation from Rio Tinto. The company has urged shareholders to vote against the resolution, which was requisitioned by Palliser Capital and other investors, saying it has already conducted its own internal review. Norges holds a roughly US$2 billion stake in Rio Tinto--about 2% of the company--nearly all in its London stock. ([email protected]; @RhiannonHoyle)
0153 GMT - BHP's pursuit of gender balance has improved the miner's underlying business performance, CEO Mike Henry says. In 2016, BHP set a goal of gender balance by mid-2025. In February, it reported female employee participation at nearly 39%, from less than 18% in 2016. "There has been discussion in the wider world about this," Henry says of diversity targets in a shareholder presentation. He says BHP's gender-balance goal is "directly aligned" with its business performance and shareholder interests. "On all fronts--be it safety, production, financial--we have improved performance through the creation of a more inclusive culture," he says. ([email protected]; @RhiannonHoyle)
0018 GMT - It is no surprise that Australian bank valuations have begun to lag those of their global peers, Citi analysts say. They write in a note that looser capital standards would drive stronger credit growth, but acknowledge that there are good reasons for Australia's prudential regulator to resist such a path. They point to Australia's high levels of fiscal stimulus and stubbornly elevated rate of inflation. This lower growth environment drives the recent decoupling of Australian bank stocks from those in Europe and the U.S., they say. Citi has a sell rating on ANZ, Commonwealth, National Australia Bank, and Westpac. ([email protected])
0001 GMT - Westpac's bear at Macquarie is pleased to see the Australian bank laying out targets for its comprehensive tech overhaul, but still thinks the stock is too expensive given the risks involved. The lender is unlikely to hit all of its medium-term targets but achieving 50%-75% of them would be significant, according to an analyst note from the investment bank. The note says that Westpac has made a good start to an ambitious journey, but warns that the share price implies only a limited discount for execution risk. Macquarie is 12-24 months away from de-risking the overhaul. Macquarie keeps an underperform rating and A$28.00 target price on the stock, which is down 1.4% at A$31.45. ([email protected])
2255 GMT - The tailwind from an elevated gold price for Pantoro doesn't stop Bell Potter from downgrading its stock to sell, from hold. Bell Potter now expects the gold price to average US$2,890/oz in 1H of this year, up 7.1% on its prior forecast. It also expects a long-term price of US$2,800/oz, up some 8.5%, as tariff uncertainty rattles markets. For Pantoro, a higher gold price outlook drives 8% and 18% upgrades to Bell Potter's earnings forecasts for FY 2025 and FY 2026, respectively. "However, we remain cautious as mining ramps up from a number of new sources and the heavy weighting of production growth to 2H of FY 2025," analyst David Coates says. ([email protected]; @dwinningWSJ)
2237 GMT - Boss Energy appears likely to beat its annual output guidance, says Macquarie following a visit to its Honeymoon uranium mine in South Australia. Boss is targeting production of 850,000 lbs of U3O8, a uranium compound, in FY 2025. Macquarie thinks this will be exceeded, forecasting 892,000 lbs. "Industry has generally had difficulty restarting idled uranium assets from the last cycle," says Macquarie. "However, Boss is bucking the trend." It retains an outperform call on Boss's stock, while trimming its target price by 6% to A$4.50/share. Boss ended last week at A$2.45. ([email protected]; @dwinningWSJ)
2231 GMT - Incitec Pivot's heavy weighting toward 2H for its earnings raises concern at Citi that it may miss consensus expectations. Incitec last week forecast that 65% of annual earnings within its global Dyno Nobel business and 90% of its fertilizer earnings would be generated in 2H. Analyst William Park says those forecasts suggest upgrades to 2H Ebit. "However, we acknowledge that headwinds prevalent in 1H could emerge in 2H alongside other external factors including commodity price fluctuations," says Citi, which has a neutral call on Incitec's stock. ([email protected]; @dwinningWSJ)
News SummaryDJ Global Equities Roundup: Market Talk31 Mar 2025 14:57:40
The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0357 GMT - Citi remains bullish on Service Stream's potential to secure Australian defense contracts. Analyst William Park tells clients in a note that last week's announcement by engineering company Downer EDI of a six-month contract extension with Australia's defense department suggests that contract award timing is intact. Park says Service Stream's property and asset services unit is well positioned to secure some packages, which could serve as a potential catalyst for the stock. Citi maintains a buy rating and a target price of A$2.00 on the stock, which is down 1.4% at A$1.75. ([email protected])
0344 GMT - Foryou Corp. is likely benefiting from intellectualization in the auto industry, Nomura analysts say in a research report. With rising demand and increasing penetration of smart functions within vehicles of this generation, the auto supply chain is transforming, and active players such as Foryou should benefit, the analysts say. The Chinese automotive-electronics supplier should enjoy further growth ahead as a full-stack solutions provider in the intelligent cockpit market, while moving ahead into the smart driving market, the analysts add. Nomura forecasts the company's top-line and bottom-line CAGRs at 24% and 26%, respectively, over 2024-2027. It raises the stock's target price to CNY42.00 from CNY41.00 with an unchanged buy rating. Shares are 1.7% higher at CNY35.40. ([email protected])
0317 GMT - Norway's giant sovereign-wealth fund intends to vote against a resolution seeking an independent review of Rio Tinto's dual-listed structure, according to the website of Norges Bank Investment Management, the fund's manager. Norges Bank doesn't provide a reason for its decision, which aligns with a recommendation from Rio Tinto. The company has urged shareholders to vote against the resolution, which was requisitioned by Palliser Capital and other investors, saying it has already conducted its own internal review. Norges holds a roughly US$2 billion stake in Rio Tinto--about 2% of the company--nearly all in its London stock. ([email protected]; @RhiannonHoyle)
0305 GMT - Taiwan stocks extend losses amid concerns over U.S. tariffs and AI-related demand. Investors remain cautious ahead of President Trump's reciprocal tariffs this week, which could target all countries. Taiwan's export-dependent economy, along with its large electronics and semiconductor manufacturers, may be impacted by the tariffs. Meanwhile, foreign outflows persist due to concerns over AI-related demand. Goldman Sachs analysts revise down their forecast for rack-level AI server volume this year, citing production positioning and uncertainties in demand and supply. The world's largest contract chipmaker and index heavyweight, TSMC, is down 3.4%. Electronics and AI server maker Foxconn Technology falls 4.2%, while MediaTek drops 4.4% and Delta Electronics is 3.2% lower. Taiwan's Taiex is last down 3.5% at 20859.28. ([email protected])
0235 GMT - I-Thail Corp.'s core profit for 1Q 2025 is likely to decline sharply due to a higher selling, general and administrative expenses-to-sales ratio, UOB Kay Hian's Kampon Akaravarinchai says in a research report. This ratio is expected to rise to 11% in 1Q 2025 from 7.7% in 1Q 2024, primarily due to base effects, as consulting fees began being recognized in 2Q 2024, the analyst says. The Thai pet food maker's 1Q 2025 earnings outlook appears weaker than the brokerage's previous expectations, due to "unexciting topline" and higher SG&A-to-sales ratio. The brokerage lowers the stock's target price to THB20.00 from THB23.00 with an unchanged buy rating. Shares last closed at THB14.10. ([email protected])
0222 GMT - Longfor Group's efforts to ensure a healthy balance sheet is a positive sign for investors, CGS International analysts write in a note. The Chinese property developer's FY 2024 results were disappointing but still profitable as its investment properties and property management units are quite profitable, they say. Despite the challenging market last year, there are some recent positive signs for the property sector, including a strong performance of the secondary market and significant improvement in land markets of top tier cities, they say. CSG International keeps a buy rating on the stock and prefers it among non-state-owned property developers. Shares last at HK$10.06. ([email protected]; @ivy_jiahuihuang)
0213 GMT - Chinese shares are lower in early trading, with the Shanghai Composite Index dropping 0.3% to 3339.48. The Shenzhen Composite Index falls 0.6% and the ChiNext Price Index is 0.35% lower. Investors are digesting China's latest PMI data, which shows the manufacturing sector continuing to expand in March. Any developments in tariffs will also be closely watched. Property stocks are leading the declines, with Poly Developments & Holdings dropping 1.7% and China Merchants Shekou Industrial Zone Holdings 2.0% lower. Bank stocks edge up, with Bank of China rising 0.7% and Bank of Communications 0.7% higher. ([email protected])
0208 GMT - The CEO of miner BHP says he saw "a heightened level of confidence" within China in the economic outlook during a recent visit to Beijing. "Of course, there's headwinds," Mike Henry tells a shareholder presentation. "But, what struck me, is there is well thought through, coherent policy in respect of about how they go about kick-starting consumption there." Henry reckons there's some stability--and even green shoots--in China's troubled real-estate sector. BHP sees potential "for that sector to build a bit of momentum moving toward the end of this calendar year and into next calendar year," he says. The miner remains optimistic about China's economy in the medium to long term, and the positive tailwind that will give to commodity demand, he adds. ([email protected]; @RhiannonHoyle)
0207 GMT - Zhongsheng Group Holdings' distributed main auto brands could still face challenges in 2025, Daiwa Capital Markets analysts say in a research report. The Lexus, Audi and BMW brands posted steeper sales volume declines within the Chinese company's sales network in 2H 2024, the analysts note. Additionally, sales volumes of auto brands at its AITO dealership stores haven't been ideal so far in 1Q 2025, with declines of 44%-47% in January and February, the analysts say. Daiwa cuts its 2025-2026 net profit forecasts for the automobile dealership group by 11%-12% and lowers the stock's target price to HK$15.00 from HK$17.20 while maintaining an unchanged outperform rating. Shares are down 0.8% at HK$14.14. ([email protected])
0153 GMT - BHP's pursuit of gender balance has improved the miner's underlying business performance, CEO Mike Henry says. In 2016, BHP set a goal of gender balance by mid-2025. In February, it reported female employee participation at nearly 39%, from less than 18% in 2016. "There has been discussion in the wider world about this," Henry says of diversity targets in a shareholder presentation. He says BHP's gender-balance goal is "directly aligned" with its business performance and shareholder interests. "On all fronts--be it safety, production, financial--we have improved performance through the creation of a more inclusive culture," he says. ([email protected]; @RhiannonHoyle)
0140 GMT - Hong Kong shares are lower in early trade, dragged by tech and consumer product stocks. Investors are parsing news that four of China's largest banks are planning to raise up to $71.6 billion via share sales under a finance ministry-led plan aimed at bolstering capital and beefing up lending. Tech stocks are leading the losses with Baidu down 2.95% and Kuaishou Technology 2.2% lower. Li Ning is down 5.2% and China Resources Beer is off 2.1%. Meanwhile, among the few gainers, Zhongsheng Group is up 0.8% and WH Group is 1.0% higher. The benchmark Hang Seng Index is down 0.8% at 23230.11 and Hang Seng Tech Index is 1.1% lower.([email protected]; @ivy_jiahuihuang)
0115 GMT - Oiltek International is poised to benefit in 2025 from positive developments which it announced, including transfer of stock listing to Singapore Exchange's mainboard, UOB Kay Hian analysts say in a research report. The renewable energy solutions provider believes this could enhance its image and would give it wider platform and greater opportunities for fund raising and allow it access to larger and more diverse investor market, the analysts note. It also proposed a bonus issue of two bonus shares for every one existing share, which could improve accessibility of investing in the company, the analysts add. The brokerage raises the stock's target price to S$1.44 from S$1.37 with an unchanged buy rating. Shares last closed at S$1.17. ([email protected])
(END) Dow Jones Newswires