The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1334 GMT - Maersk fourth quarter earnings are expected to be strong, driven by its main shipping unit, JPMorgan analysts write. The bank expects 2024 group underlying Ebitda of $11.6 billion and Ebit of $5.85 billion, just ahead of the upper-end of company guidance. "We therefore see some risk of a positive pre-release." While the outlook for container shipping is structurally weak, the bank expects 2025 will remain a profitable year for the shipping lines given elevated freight rates and a low likelihood that Red Sea crossings resume fully during the year, in its view. JPMorgan expects management to guide for EBIT of $1 billion-$4 billion in 2025. It doesn't expect management to resume the share buyback program. Shares trade 0.7% lower at 10,390 kroner. (dominic.chopping@wsj.com)

1113 GMT - EasyJet's outlook for the summer is positive but the low-cost airline will have to first navigate expected winter losses first, JPMorgan analysts say in a research note. Revenue trends are expected weaker in the second fiscal quarter compared with those reported in the first, and the company is lowering prices to reflect its increased capacity. Together this might make easyJet's headline winter loss worse than the market expected, JPMorgan says. When adjusted for revenue headwinds, the loss for the first half of fiscal 2025 is likely to improve from last year's 350 million headline pretax loss, JPMorgan says. The company's summer booking trends appear positive and supportive of consensus, the analyst says. Market expectations for the fiscal year aren't expected to change. Shares trade down 2.4% at 499.1 pence. (pierre.bertrand@wsj.com)

1028 GMT - Schaeffler's profit warning is partly due to its industrial division, which means it has limited implications for peer auto-parts suppliers, UBS analysts say in a research note. The German company said its 2024 profitability would fall short of both its own guidance and consensus expectations due to a weak 4Q performance at its bearings and industrial solutions division and at recently acquired Vitesco Technologies. While the impact on the rest of car-parts suppliers is limited, share prices are likely to remain volatile in the coming weeks and months, the analysts say. UBS is generally more cautious on the industry's prospects for 2025 than the consensus, the analysts say. Schaeffler shares drop 13%, while Forvia falls 1.6% and Valeo is up 0.3%. (adria.calatayud@wsj.com)

1017 GMT - Schaeffler's profit warning means the market is likely to take a more conservative approach on its prospects for 2025 following its acquisition of Vitesco Technologies, UBS analysts say in a research note. The German auto-parts supplier cited weakness at its bearings and industrial solutions division and at recently acquired Vitesco Technologies in the fourth quarter as reasons for the warning. "Weakness in the bearings and industrial solutions division is not new, but the magnitude seems greater than anticipated by the market," UBS says. Meanwhile, the burden from Vitesco is likely due to weak electric-vehicle demand and the change in accounting standards between Vitesco and Schaeffler, the analysts say. Shares fall 12%. (adria.calatayud@wsj.com)

1009 GMT - EasyJet's earnings demonstrated good progress in reducing winter losses, but the low-cost airline warned of softer sequential revenue trends in 2Q, Stifel analyst Johannes Braun says in a research note. EasyJet attributed the decline to capacity increases on longer flights. The company still expects to reduce its 1H losses, but this excludes Easter moving into 3Q and the release of a provision last year, Stifel says. This implicitly downgrades the company's winter pretax result by 60 million to 70 million pounds, Stifel adds. EasyJet is confident it will achieve current pretax consensus of 709 million pounds for the year, compared with 610 million pounds a year prior. Shares trade down 15.40 pence, or 3%, at 496 pence. (pierre.bertrand@wsj.com)

0939 GMT - Volvo earnings expectations face downside risk into the first quarter as consensus doesn't seem to fully take into account the tough average selling price comparables and normal seasonality, Citi analyst Klas Bergelind says. The bank says 2025 is set to be back-end loaded year for Volvo and it also cautions against getting too optimistic on North America into the print. The company is widely expected to raise its North America truck guidance. The focus will be on Volvo branded truck orders and Citi says it's not convinced that orders will beat significantly, as some bulls believe. Citi lifts its target price to 292 kronor from 280 kronor and retains its neutral rating. Shares rise 0.6% to 290.80 kronor. (dominic.chopping@wsj.com)

0849 GMT - European natural-gas prices jump back to 50 euros a megawatt-hour, the highest level since the first trading day of the year as freezing weather in Texas threatens U.S. LNG exports. "The catalyst for the move appears to be an outage at the Freeport LNG export terminal in the U.S.," ING analysts say. Meanwhile, cold weather in Europe has exacerbated supply concerns. "Europe needs to pull in more LNG this winter with the loss of Russian pipeline flows through Ukraine, along with also stronger demand," the analysts say. "EU gas storage has now fallen to 59% and the region will need to try to make sure it stays above the European Commission's target of 50% full by February 1." The benchmark Dutch TTF contract currently trades 0.8% lower at 49.64 euros a megawatt-hour. (giulia.petroni@wsj.com)

0823 GMT - Zhejiang Leapmotor Technology will likely deliver about 25,000 to 30,000 vehicles in January, adrop of 30%-40% on month, Deutsche Bank analyst Bin Wang writes in a note. He attributes the expected sequential decline to fewer working days in January due to the early Lunar New Year holiday and consumer behavior. Some buyers brought forward purchases to December, while others delayed pulling the trigger as they awaited local government subsidies, he adds. The Chinese carmaker set a sales volume target of 500,000 units for 2025, thanks to its expanding dealer network and product portfolio, he says. The brokerage maintains a buy rating on the stock with a target price of HK$49.00. Shares last closed at HK$34.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0820 GMT - Schaeffler's warning on its 2024 results highlights the challenges the company currently faces, Deutsche Bank's Christoph Laskawi says in a note. The German auto-parts supplier is dealing with challenges arising from the integration of recently acquired Vitesco Technologies and even more so with tough end markets in its industrial division, the analyst says. The company warned its profitability for 2024 would be lower than expected, a significant disappointment after it could guidance with second-quarter results, the analyst says. "With [fourth-quarter] headlines out, the focus will move to the potential guidance for 2025 that is likely reflecting just another transition year and not pointing to sizeable improvements ahead," Laskawi says. Deutsche Bank cuts its recommendation on the stock to hold from buy. Shares fall 16%. (adria.calatayud@wsj.com)

0735 GMT - This year will be another difficult one for automotive manufacturers, Berenberg's Romain Gourvil writes. The volume recovery is taking longer than expected, concerns about trade tensions are growing, and investors need convincing that new models will provide margin support. Berenberg upgrades BMW to buy from hold and downgrades Mercedes-Benz and Porsche Automobil Holding to hold from buy. Porsche AG, Renault and Volkswagen are retained at buy and Stellantis at hold. Its BMW price target moves to 92 euros from 80 euros; Mercedes-Benz to 63 euros from 70 euros; Porsche Automobil Holding to 41 euros from 67 euros. Porsche AG price target moves to 75 euros from 83 euros; Renault to 57 euros from 55 euros; Stellantis to 14 euros from 17 euros; and Volkswagen's is retained at 112 euros. (dominic.chopping@wsj.com)

0720 GMT - Some Chinese auto stocks remain attractive as the country was the only auto market which outperformed the global auto sector, thanks to robust electric-vehicle sales, DBS analysts write in a note. There could be some ongoing market volatility this year but DBS suggests investors take positions in key growth areas such as China and Japan. DBS forecasts China and Japan will outperform other major auto markets in terms of on-year sales growth. China will see some healthy growth drivers from an extended auto stimulus policy this year, they add. Among the stocks, DBS picks Geely and XPeng as sector top picks, thanks to their strong margins and sales growth potential. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

2112 GMT - Whether passengers wanted to escape the winter weather or make the most of it, United Airlines capitalized on consumers' desire to vacation in 4Q. The airline says it added 1,500 flights to sun destinations and nearly 30% more seats to popular ski markets during the quarter, resulting in what it called its largest domestic schedule in fourth-quarter history, at 11% more flights than last year. The company set a record for number of passengers carried in a single quarter. This influx of flights and passengers drove its top and bottom lines higher in 4Q. The carrier expects demand to continue in 1Q, forecasting higher-than-expected profits. Shares rise 4.2% in after-hours trading. (connor.hart@wsj.com)

(END) Dow Jones Newswires

January 22, 2025 12:20 ET (17:20 GMT)

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