The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0924 GMT - Crude palm oil prices may remain elevated due to the continuing U.S.-Iran conflict, higher biodiesel mandates, El Niño-led supply concerns and rising fertilizer prices, CIMB Securities analyst Ivy Ng Lee Fang says in a note. Demand is expected to be supported by Indonesia's B50 biodiesel mandate requiring a 50% palm oil-based blend and Malaysia's B15 mandate rollout, alongside higher U.S. biofuel requirements, she says. Feedstock availability for food and biodiesel demand remains the key concern amid risks from the El Niño weather phenomenon and rising fertilizer prices, which could curb supply and force demand rationing, she adds. CIMB maintains a neutral rating on Malaysia's plantation sector, with IOI as its top pick. (yingxian.wong@wsj.com)

0902 GMT - China's producer price index is likely to rise further in 2026, according to UOB's Ho Woei Chen in a research note. China's CPI and PPI rose more than expected in April, the economist says. The price trajectory suggests full-year PPI will likely exceed UOB's forecast, as higher energy prices and raw material costs sustain in the following months, she says. In particular, oil prices are expected to remain elevated until the disruption in the physical market subsides, which could take months, she adds. UOB raises its forecast for China's 2026 PPI to 2.8% from 1.2%. (tracy.qu@wsj.com)

0901 GMT - BP's management should avoid restarting its share buyback, even as peers maintain and even increase quarterly run rates, RBC Capital Markets analyst Biraj Borkhataria writes. Capital discipline should remain front and center of its turnaround efforts and reducing debt will serve the company best in the long term, he adds. An unexpected buyback will only offer a short-term "sugar rush" he says. The prolonged higher price environment could mean BP's debt falls faster than market watchers are expecting, Borkhataria says. BP's shares rise 0.4% to 538 pence.(adam.whittaker@wsj.com)

0858 GMT - YG Entertainment's newest K-pop girl group BABYMONSTER needs to show stronger monetization and tour scalability in overseas markets before Nomura analysts turn more upbeat on the stock. The South Korean entertainment company posted soft 1Q earnings amid subdued sentiment across the sector, the Nomura analysts say in a note. While the girl group is poised to start its concert tour in June, the analysts say contribution from BABYMONSTER's activities could remain limited given the group's early stage of monetization. Nomura cuts its target price on YG to 57,000 won from 80,000 won and reiterates its neutral rating. Shares closed 1.5% lower at 49,450 won. (megan.cheah@wsj.com)

0853 GMT - Compass Group will likely have EPS estimate upgrades from Shore Capital of around 1% to 2% after raising guidance for fiscal 2026, analyst Greg Johnson says in a note. From an operating perspective, the catering contractor's client retention and new business wins remain strong, the analyst says. The business-and-industry sector performed strong in North America and the company posted double-digit organic revenue growth. Hopefully, all this is helping to ease market fears over the threat from AI across the financial sector, Johnson says. "We continue to believe that Compass remains well positioned to manage the AI/GLP-1 threats and rising food-and-beverage inflation," Johnson says. Shares are up 1.9% at $30.07. (anthony.orunagoriainoff@dowjones.com)

0843 GMT - The luxury sector's weak fundamentals remain unchanged, analysts at Berenberg say. "Even adjusting for the impact of the conflict in the Gulf, the weakness of the underlying 1Q data raises questions about whether luxury remains a growth sector," the analysts write in a note. "Management teams were quick to highlight the impact of the Middle East conflict," they say. They provided the market an excuse to cut 2026 consensus revenue growth expectations for the sector, the analysts add. "However, excluding the impact of the Middle East, we believe that underlying revenue trends will continue to disappoint," Berenberg says, noting that trends in China and among so-called aspirational consumers continue to be a key source of weakness. Cucinelli and Hermes stock remain Berenberg's top picks, with buy ratings. (andrea.figueras@wsj.com)

0841 GMT - Yuexiu Property's plans to sell some of its assets for about 4.69 billion yuan, or roughly $690 million, is likely to sharpen its focus on its core residential-development property business, UOB Kay Hian says in a note. The deal is likely to generate a net gain of around 108 million yuan, analysts Damon Shen and Jieqi Liu say. They lift their estimates for Yuexiu's 2026-2028 core net profit by 0.6%-34%. The company said the disposal is poised to optimize the Hong Kong-listed property company's portfolio, with proceeds to be fully reinvested into residential land acquisition and operations, the analysts add. UOB Kay Hian raises its target price to HK$4.80 from HK$4.20 and maintains a buy rating. Shares closed 2.4% higher at HK$4.65. (megan.cheah@wsj.com)

0839 GMT - Higher commodity prices offer BP a windfall that it can use to deleverage and put its finances on a firmer footing, RBC Capital Markets analyst Biraj Borkhataria writes in a note. Misallocated spending and a foray into transition energy assets has piled on debt and damaged investor confidence. A period of sustained higher prices improves BP's investment case and should help make its leverage similar to peers' by 2027, he adds. This should also enable the complete removal of hybrids from its balance sheet, he adds. Recent exploration success and new management also aid BP's investment case. RBC upgrades its rating of the oil major to outperform from sector perform. Shares rise 0.4% to 538 pence.(adam.whittaker@wsj.com)

0836 GMT - Ams-Osram should benefit from opportunities in artificial intelligence and smart glasses, Jefferies analysts write in a note to clients. They lift their rating on the Austria-based electronics company to buy from hold and their price target to 21 Swiss francs from 8.3 francs. Ams-Osram, which is listed in Switzerland, manufactures sensors for a variety of industries. It won an AI contract with an undisclosed company last week. Ams-Osram is well positioned to supply micro-emitters for AI data centers, analysts say. The company could also benefit from supplying components for smart glasses to Meta Platforms, they say. Ams-Osram shares trade 4.7% higher at 17.90 francs. (mauro.orru@wsj.com)

0818 GMT - Compass Group can expect an upgrade to earnings consensus after raising operating profit growth guidance for fiscal 2026 to above 11%, Bernstein analyst Sabrina Blanc says in a note. The catering contractor reported first-half revenue of $25 billion, up 7.2% on a like-for-like basis and above a company-compiled consensus of 7%, Blanc says. Although the company's one negative element was net new business at 3.8%, below the 4% to 5% target, management expects an acceleration into the second half of the year. "In light of this positive set of results, we reiterate our outperform rating," Bernstein says. Shares are up 1.5% at $29.95. (anthony.orunagoriainoff@dowjones.com)

0806 GMT - The recovery in Malaysia's real estate stocks suggests investors have largely looked past the impact of the U.S.-Iran conflict, RHB IB analyst Loong Kok Wen says in a note. Share prices corrected in March-April on expectations of margin compression, she notes. Developers are expected to benefit from resilient demand in Iskandar Malaysia ahead of the completion of a rail project, as well as continued interest in luxury homes in premium locations, she adds. Loong thinks property remains a hedge against inflation, while a supportive interest-rate environment should sustain buying interest. RHB maintains an overweight rating on the Malaysian real estate sector, pegging Sime Darby Property and Eco World Development as top picks.(yingxian.wong@wsj.com)

0757 GMT - Ganfeng Lithium's earnings per share is likely to rise further this year as lithium prices increase, say DBS Group Research analysts in a note. The Chinese lithium producer is targeting its lithium self-supply to rise to around 70% in 2026 before growing to more than 85% in the next two to three years, the analysts note. It also aims to boost its lithium chemical production volume while advancing the commercialization of solid-state batteries, the analysts add. DBS raises its target prices for Ganfeng's Shenzhen-listed shares to 112 yuan from 92 yuan and for its Hong Kong-listed shares to HK$103 from HK$83. The A shares closed 0.5% higher at 85.18 yuan while the H shares add 1.7% to HK$84.65. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

May 11, 2026 05:25 ET (09:25 GMT)

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