The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0937 GMT - For European capital-goods companies, grid remains among the most attractive end-markets, Barclays analysts say in a research note. But where renewables are the problem, cables are the solution, they say. The recent blackouts serve to increase confidence that grid-infrastructure capex spend is set to increase, the analysts say. Cable manufacturers Danish NKT and Italy-based Prysmian offer best exposure to this, they add. As a result, Barclays raises its price targets for NKT to 686 Danish kroner ($104.72) from 597 kroner, and Prysmian to 82 euros from 72 euros. Shares trade 3.1% higher and 3.7% higher, respectively. (nina.kienle@wsj.com)
0848 GMT - For European capital goods companies, grid resilience amid the energy transition remains a key focus area, Barclays analysts say in a research note. Grid capital expenditure has been elevated in recent years, driven by expansions and upgrades to ageing infrastructure in developed markets, yielding often double-digit end-market growth for industrials with exposure, they say. The recent Iberian blackouts likely underpin both positive investor sentiment toward, and continued strength in, demand for grid infrastructure and energy-transition-related industrial products and systems, they say. (nina.kienle@wsj.com)
0817 GMT - Oil prices slip, with Brent crude down 0.1% at $64.07 a barrel and WTI down 0.2% at $61.43 a barrel. Prices for Brent and WTI are both down more than 14% in the year to date, and the market is looking ahead to OPEC's meeting on Sunday to review its supply agreement. Investors increasingly expect the cartel to hike output, keeping pressure on oil prices. That said, lower prices in 2025 through 2026 could lead to an earlier and lower peak for U.S. shale production, Goldman Sachs analysts say in a note. Oil capital expenditure will likely further decline, and a lack of new non-OPEC projects, a U.S. shale production plateau and a recovery in decline rates are set to weigh on non-OPEC supply growth, Goldman writes. (joseph.hoppe@wsj.com)
0610 GMT - The growing market share of SATS is expected to support its FY 2026 earnings growth, CGS International analysts write in a note. The company shared that its cargo tonnage handled has outpaced global cargo demand since 3Q FY 2024, reflecting market share gains, which are also likely to offset global cargo weakness in FY 2026, they say. SATS has seen sustained volume growth despite escalating trade tensions between the U.S. and its trading partners since Trump's 'Liberation Day' in April, they add. This should be from supply chain re-routing and front-loading effects from the temporary trade truce between the U.S. and China, they say. CGS International raises its target price to S$3.60 from S$3.05, while maintaining an add rating on the stock. Shares are at S$3.11. (amanda.lee@wsj.com)
0543 GMT - Cal-Comp Electronics stands to benefit from the start of production for two new customers, Maybank Securities (Thailand)'s Yugi Takeshima says in a research report. The brokerage maintains the stock's buy rating. Manufacturing for one client begins in 1H and production for the other starts in 2H, offering 20%-25% upside to the electronics-manufacturing-services company's 2024 sales at full capacity, the analyst says. The Thai company's backlog also remains firm this year, mostly from its printing and hard-disk-drive/solid-state-drive segments. However, the brokerage lowers its 2025 and 2026 core earnings estimates for the company by 3% and 4%, respectively, to partly reflect an uncertain global economic situation. It trims the stock's target price to THB9.00 from THB9.20. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
May 27, 2025 05:37 ET (09:37 GMT)
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