The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0828 ET - Estee Lauder's possible merger with Spanish group Puig would expand brand and market reach in largely complementary categories, Deutsche Bank analysts write in a note. The U.S. beauty group has a strong presence in skincare, makeup, and luxury fragrances, while Puig excels in perfume, cosmetics and some fashion brands, they say. The Spanish group's footprint in Latin America and Southern Europe could be seen as complementary to Estee Lauder's operations in North America and Asia, they add. A merger could also result in enhanced negotiating power, improved digital-marketing expertise and other efficiencies over time, Deutsche says. Still, the analysts await further details regarding a possible deal. The parties have for now said that no final decision has been made and no agreement has been reached. (andrea.figueras@wsj.com)
0825 ET - Canadians are putting more into their baskets at Dollarama, even as harsher winter weather kept some shoppers away. In 4Q consumers leaned into seasonal decor and long-shelf-life consumables, helping support sales despite weaker traffic. Same-store sales in Canada rose 1.5%, driven by a 3.1% increase in average spend per visit that offset a 1.6% decline in transactions. Dollarama says results were constrained by "unfavorable weather conditions negatively impacting store traffic during historically strong sales weeks." (adriano.marchese@wsj.com)
0750 ET - Nordea shares have had a decent run in the last year, but valuation now looks stretched versus fundamentals, Bank of America Securities analysts write. The net interest income picture is murkier, with management guiding for flat-to-down full-year 2026 net interest income on tighter margins. "We now think Nordea's business is more negatively geared to rates and more reliant on loan growth than previously expected." BofA sees high AI spending risks amid high competition and digitization in the Nordics, while the dividend yield remains below peers' with little scope to raise it. The bank downgrades Nordea to underperform from neutral and lowers its price target on the stock to 171 Swedish kronor from 182 kronor. Shares fall 1.9% to 164 kronor. (dominic.chopping@wsj.com)
0740 ET - Estee Lauder could face risks from a potential merger with Spanish group Puig, analysts at Deutsche Bank say in a note to clients. The Wall Street Journal reported on Monday that the U.S. company was in talks to buy Puig for a combination of cash and stock. Estee Lauder's shares closed down more than 7% after the news. "We understand and frankly share the market's concerns," they say. The analysts see "significant near-term execution risk," at a time when the group's own operations are "still in a relatively early transformation stage standalone." Both companies said that no final decision has been made and no agreement has been reached. Despite initial caution and skepticism, the analysts "await incremental details with an open mind." (andrea.figueras@wsj.com)
0738 ET - German software group SAP will have to up investment in order to compete with rapidly evolving artificial-intelligence agents, analysts at J.P. Morgan say. The required outlay will likely tighten margins and weigh on the group's earnings, they write in a note. "Change is fast approaching and incumbents, including SAP, will need to invest and evolve to give themselves the best chance of remaining relevant as the AI cycle unfolds." Moreover, the analysts expect SAP's revenue growth to slow as the company's cloud backlog diminishes, a factor that will likely weigh on the share price. The market "now demands acceleration to counter prevailing software bear arguments." SAP shares fall 3%. (josephmichael.stonor@wsj.com)
0733 ET - Shares in U.K. home builders fall after Bellway cut its guidance and the government announced a raft of measures to make new homes more environmentally friendly. Bellway expects lower margins than forecast earlier this year as economic uncertainty from the Middle East conflict weighs on demand and increases building costs--factors that will hurt all house builders. Meanwhile, developers will need to install solar panels and heat pumps in new homes under new government measures. "The detail of the planned rules appears to have unsettled housebuilders," Wealth Club's Jo Thorne says. Bellway shares fall 11%, while Crest Nicholson is down 5.7%. Taylor Wimpey and Barratt Redrow fall 2.2% and 1.1%, respectively.(josephmichael.stonor@wsj.com)
0716 ET - Transcontinental's remaining businesses will be what drives its success, if it returns sustained positive results, RBC's Drew McReynolds says in a report. With Packaging now divested and C$20-a-share returned to investors, the strategic spotlight shifts to retail services and printing, and media/educational publishing. The analyst says focus will now be on the extent to which the remaining asset mix can return to sustained positive revenue and EBITDA growth. This "remains the primary potential re-rating catalyst for the stock." He sees FY2027 as a realistic point for growth to turn upward, supported by further in-store marketing tuck-ins, the full benefit of post-packaging cost cuts, and benefits from smaller growth areas such as media and book printing. (adriano.marchese@wsj.com)
0700 ET - Puma's efforts to revamp its business alongside shareholder Anta Sports should succeed, AlphaValue analyst Jie Zhang says in a research note. The German sporting-goods company is pursuing a turnaround plan with China's Anta as its largest shareholder and a closer strategic partner, the analyst writes. The reset is expected to strengthen Puma's fundamentals and improve its profitability profile, Zhang says. Anta's distribution strength, digital ecosystem and operational expertise could accelerate Puma's turnaround, particularly in China and across Asia, she says. "This reinforces our confidence in the recovery trajectory from [2027] onwards," the analyst adds. The stock is up 4.5% at 21.33 euros. (andrea.figueras@wsj.com)
0642 ET - The Persian Gulf war is now in week four, disrupting operations in the Strait of Hormuz and at Middle East airports, impacting 2%-3% of global sea freight volumes and around 15% of air freight capacity, J.P.Morgan analysts write. Oil prices have increased materially and the bank expects higher freight rates to offset increased costs. However, ultimately the success in recovering higher costs depends on supply-demand fundamentals. The earnings impact for container shipping is balanced and the recent sector outperformance is difficult to justify, J.P.Morgan says. In contrast, air cargo capacity has tightened and strong air freight rates should support yields for forwarders. It reiterates its underweight ratings on Maersk, Hapag-Lloyd, ZIM and Kuehne+Nagel stocks and its overweight stance on DSV and DHL. (dominic.chopping@wsj.com)
0616 ET - Estee Lauder's potential acquisition of Puig might not solve its problems, AJ Bell's Dan Coatsworth writes. U.S. cosmetics company Estee Lauder must do something radical to get back on top after struggles in recent years, he says. It has been pursuing a turnaround plan under new leadership. "A takeover of [Spanish beauty group] Puig is an interesting proposition, but history suggests that bolting two companies together is not a guaranteed recipe for success," he adds. Puig shares jump 13% while those in Estee Lauder are less than 1% higher in premarket trade. (andrea.figueras@wsj.com)
0600 ET - U.K. house builder Bellway is being affected by sector headwinds, including the conflict in the Middle East, Interactive Investor analyst Victoria Scholar says in a note. The war in Iran and the ensuing economic uncertainty will likely affect consumer confidence and add pressure in terms of build-cost inflation as the energy shock looks set to push up construction costs such as labor and materials, Scholar says. Furthermore, the Bank of England's monetary policy paralysis has affected shares as they have fallen over 25% since the start of the year on the back of inflation fears, the prospect of higher-for-longer interest rates, and worsening mortgage affordability, Scholar says. Shares are down 8.8% at 19.49 pounds. (anthony.orunagoriainoff@dowjones.com)
0548 ET - Spanish beauty group Puig's potential business combination with Estee Lauder doesn't seem compelling from a portfolio-construction perspective, Jefferies analysts write. A possible deal would increase exposure to prestige fragrance and skincare as both come off of peak growth rates, the analysts say. Furthermore, an agreement would add complexity to U.S. cosmetic company Estee Lauder as it continues to work through its own turnaround, they say. Shares in Puig are up 13% while Estee Lauder stock is less than 1% higher in premarket trade. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
March 24, 2026 08:28 ET (12:28 GMT)
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