The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0808 ET - A look at past peak valuation levels suggests there's a little less upside for Canada's big bank stocks, RBC Capital Markets' Darko Mihelic reckons. The analyst notes the Canadian bank index is trading above historical averages and near the 2006 peak on a forward price-earnings basis. So Mihelic reduces target forward P/E multiples based on 2026 core EPS estimates by 1 times for all the banks covered. The price target for Bank of Montreal falls to C$205 from C$219, while Bank of Nova Scotia's target drops to C$98 from C$106. Canadian Imperial Bank of Commerce's target moves to C$147 from C$158, National Bank to C$180 from C$193 and Toronto-Dominion Bank declines to C$138 from C$148. The median forward P/E target multiple shifts to 14 times from 15. (robb.stewart@wsj.com)
0806 ET - UBS Group is likely to benefit from a compromise on Switzerland's plans to revise its banking regulatory regime, Bank of America's Antonio Reale and Rohan Datta say in a research note. Switzerland initially proposed the full deduction of certain assets, including capitalized software and deferred tax assets, from the bank's CET 1 capital, but Bank of America expects the government to apply cap on deferred tax assets when it presents its bill next month. This would reduce UBS's bill to $6.2 billion from $10.8 billion, the analysts estimate. Bank of America lowers its price objective on UBS to 46 Swiss francs from 48 francs, but says the disconnect between its price and fair value has gone too far. Shares rise 3.3% to 30.26 francs. (adria.calatayud@wsj.com)
0806 ET - European chemicals stocks are already experiencing evidence of panic buying as a result of the energy disruption caused by conflict in the Middle East, J.P. Morgan analysts write. Production cuts and distribution shocks for chemicals manufacturers in Asia are allowing European chemicals groups to charge higher prices, the analysts say after conversations with industry executives. "This is setting up potentially material near-term earnings upside across the sector," the analysts say. Though markets have so far favored raw materials companies like BASF and Brenntag, more specialized chemicals companies will also benefit from supply shocks, they add. The Stoxx Europe 600 Chemicals index, gains 1.8%, slightly ahead of broader market performance. (josephmichael.stonor@wsj.com)
0754 ET - Estee Lauder's potential acquisition of Spain's Puig is strategically understandable, but the shareholder structure makes execution unusually complex, AlphaValue analyst Jie Zhang says. "Puig remains tightly controlled by the founding family, as does Estee Lauder," the analyst writes in a note. "Any transaction would inevitably dilute the Puig family's control, significantly complicating execution." Puig's recent separation of the Chairman and CEO positions reflects the founding family's intention to step back from operational responsibilities, potentially paving the way for a more behind-the-scenes role, the analyst says. However, it might be challenging to accept a deal that could effectively shift Puig toward a U.S.-controlled structure, Zhang adds. (andrea.figueras@wsj.com)
0751 ET - Merck's nearly $6 billion deal for cancer biotech Terns Pharmaceuticals could give it another cancer drug blockbuster as it prepares for its powerhouse drug Keytruda to lose patent protection. Terns develops pills to treat cancer, as well as obesity and metabolic liver diseases, and its highest-potential drug is a pill to treat a blood cancer known as chronic myeloid leukemia. The drug has delivered encouraging study results and Truist analysts estimate it could bring as much as $2.3 billion in peak adjusted annual sales. Keytruda will lose protection of its main patent in 2028. The immunotherapy notched sales of around $31.7 billion last year. (nicholas.miller@wsj.com)
0732 ET - UBS Group has options at its disposal to mitigate a potential hit from new Swiss capital rules, but it probably sees moving out of its home country as a last resort, Bank of America's Antonio Reale and Rohan Datta say in a research note. The Swiss bank could explore selling assets, including its U.S. business, before moving its base overseas, according to Bank of America. "Re-domiciliation is not a straightforward process for banks, even less so for a Swiss wealth manager," the analysts say. "Switzerland's international ties and its history of neutrality have nurtured a unique environment." Shares rise 3.2%. (adria.calatayud@wsj.com)
0721 ET - Puma shares jump after Chinese sports retailer Anta Sports, which is set to become the German group's largest shareholder, reported strong results. Anta agreed to buy a 29% stake in Puma in January. The Hong Kong-listed company reported sales for the second half of 2025 1% higher than consensus forecasts, while net profit was 2% higher, Jefferies analysts write. Anta's stake in Puma is expected to help the German brand expand into China, while also improving the company's distribution and digital operations, analysts at Baader write. Puma shares gain 7.3%. (josephmichael.stonor@wsj.com)
0627 ET - Oil prices extend losses, plunging more than 5% as diplomatic efforts to end the Iran war overshadowed continued military strikes and the effective blockade of the Strait of Hormuz. In mid-morning European trading, Brent crude is down 5.4% to $94.82 a barrel, while WTI falls 5% to $85.23 a barrel. Still, "the conflict has triggered widespread energy stress, including surging diesel prices, fuel shortages in multiple countries, and increased demand for alternative supplies, while uncertainty over negotiations and ongoing attacks continues to keep markets highly volatile," says Soojin Kim, analyst at MUFG. (giulia.petroni@wsj.com)
0600 ET - Delivery Hero's disposal program is likely to stay small-scale for now, J.P. Morgan analysts write in a note to clients. The German food-delivery group said it would sell its Foodpanda platform in Taiwan to Grab Holdings for $600 million, kicking off a streamlining program it set out late last year in response to investor pressure. But despite continued demands from a major shareholder, large-scale M&A looks unlikely at this point, JPM says. Instead, the most probable next divestment will be of the group's Latin American business to investor Prosus, the bank adds. JPM has an overweight rating on the company and a 28-euro price target on its stock. (joshua.kirby@wsj.com; @joshualeokirby)
0555 ET - The U.K. inflation data due to be released in April will carry more weight than Wednesday's print as it will show the impact of the Middle East conflict, RBC Capital Markets strategists say in a note. Tensions in the Gulf region have led to a sharp rise in energy costs, raising the risk of high inflation around the globe. The latest data shows annual U.K. inflation in February was 3.0%, unchanged from the January inflation and in line with the consensus forecast by economists in a WSJ poll. (miriam.mukuru@wsj.com)
0553 ET - Arm Holdings' move to sell its own semiconductor chips will add a new source of growth, which is set to meaningfully boost earnings, Deutsche Bank analysts write. The pivot will generate around $15 billion annually in sales in 2031, the company said. However, the shift means Arm will now compete directly with its historical customer base, the analysts say. Arm's margins will also compress over time as the company is compared more to other artificial-intelligence companies, they add. Arm Holdings shares surge by almost 13% to $152.07, around three times the stock's price at its initial public offering in September 2023.(josephmichael.stonor@wsj.com)
0531 ET - German defense company Renk is looking to strengthen its naval business, potentially via mergers and acquisitions, CEO Alexander Sagel told the Jefferies European Mid-Cap conference Tuesday. The gearbox maker also sees the secondary market for spare parts, accessories, and components for military equipment as an increasingly attractive mid-term growth opportunity, Jefferies says. Renk's management is very confident about its margin progression this year, Jefferies adds. Shares are up 1.4% at 51.83 euros. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 25, 2026 08:08 ET (12:08 GMT)
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