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

1159 GMT - Uber Technologies has had its eye on Delivery Hero for some time, Davidson analysts say in a research note. The U.S. ride-hailing company has emerged as the biggest shareholder in the German company after making sizable stake purchases in recent weeks. And now, Uber's 10 billion euro ($11.60 billion) takeover approach makes strategic sense and appears to be a reasonable valuation, the analysts add. "The addition of Delivery Hero would enable Uber to solidify its marketplace flywheel in some of its key International growth markets (particularly Asia) and continue to build on its competitive strengths in Europe," they write, noting--however--that a deal would almost certainly be scrutinized by regulators. (connor.hart@wsj.com)

1147 GMT - Italy's blue-chip stock index hit its first record high since the dot-com boom as stocks linked to AI soar. The FTSE MIB index closed at 50220.35 points Monday, beating out a record hit in March 2000. The index is up over 11% so far this year. Shares in cross-listed STMicroelectronics, which supplies chips to Apple and SpaceX among others, have more than doubled in value so far this year. Prysmian, which manufactures optical cables used for the data transmission crucial to AI build-out, jumped 76% over the same period. The index slips from record levels Tuesday, dragged by a 6.3% decline for Ferrari after investors reacted with disappointment to a new electric supercar. (josephmichael.stonor@wsj.com)

1055 GMT - Wacker Chemie's 40% surge in share-price valuation so far this year limits the stock's potential to rally further, UBS's Christian Bell writes. Shares in the German group increasingly reflect the expectation that earnings for its polysilicon and chemicals divisions will recover. "We believe current valuation increasingly reflects supportive recovery assumptions, limiting scope for further upside," Bell writes. The investment case for Wacker Chemie rests in large part on a Trump administration probe into imports of polysilicon, which is used in solar panels. Without a positive outcome, the company said it would discontinue its solar operations. Paired with persistent polysilicon oversupply from China, the company will struggle to return to its historic earnings levels, Bell writes. Shares fall 2.9%. (josephmichael.stonor@wsj.com)

1049 GMT - Ferrari's new electric vehicle is a "revolutionary and polarizing" car, Bernstein analysts write. The Luce sees Ferrari enter a segment where there has been very limited demand, while there has been no shortage of naysayers stating that this is a step too far, they add. "We take a more balanced view on the prospects for Luce. We are not surprised by the initial drop in Ferrari's stock price." The Luce departs from much of Ferrari's traditional design language, but that may not be a bad thing, Bernstein says. The majority of Ferrari buyers are existing clients, so its first EV will likely be a "must-have." At the same time, the Luce could give some buyers the chance to progress toward eligibility for Ferrari's strictly limited models. Shares fall 6.3%. (dominic.chopping@wsj.com)

1022 GMT - Merck KGaA's growth potential is already fairly priced into the German life-sciences and chemical company's share price, Jefferies's James Vane-Tempest writes. "The market is fairly rewarding the exposure to structural growth drivers and near-term headwinds," Vane-Tempest says. The group's life-science products are at the core of its growth potential and efforts to expand margins. However, Merck's share price currently reflects the expectation that margins will expand in line with the group's medium-term guidance. Merck could yet surpass expectations if it delivers on innovation, the analyst notes. Jefferies downgrades its recommendation for Merck to hold from buy. Shares fall 2%. (josephmichael.stonor@wsj.com)

0948 GMT - Lenovo's server product mix is upgrading toward AI servers, Goldman Sachs analysts say in a research note. The higher blended average selling price of its servers priced above $250,000 over the past few quarters reflect its movement toward high-end AI servers, the analysts say. GS expects the company to ship 2,000, 7000 and 9,000 servers priced above US$250,000 in 2026-2028, respectively driving its overall server revenues higher at a 37% compound annual growth rate during the period. As Lenovo mainly serves tier-2 cloud service providers and enterprises in AI servers, the analysts think the gross margin of AI servers won't be as low as the original design manufacturers that serve tier-1 clients across the U.S. and China. Shares last ended 15% higher at HK$18.19. (sherry.qin@wsj.com)

0932 GMT - Julius Baer can look to increased flows and good operating leverage, Bank of America says, upgrading its rating on the Swiss private bank to buy from neutral. Julius Baer can expect a recovery in flows from new initiatives, increased productivity, and a sunnier outlook in Asia, BofA says. That boosts the shares' attractiveness, the bank says. Julius Baer's CET1 capital ratio is also very robust, the bank's analysts say, trimming their target on the stock to 70 Swiss francs from 71 francs. (joshua.kirby@wsj.com; @joshualeokirby)

0928 GMT - Infineon Technologies shares have already factored in the benefits from artificial intelligence and a recovering automotive industry that propelled semiconductor stocks to new highs, MWB Research's Abed Jarad writes in a note to clients. Jarad downgrades the German chip maker's stock to sell from hold. "Investor appetite for AI exposure and power-semiconductor beneficiaries has pushed valuations and multiples across the space materially higher, and Infineon has participated strongly in that re-rating," he says. Infineon stock has doubled since January. Jarad notes any slowdown in order momentum or AI capital expenditure expectations could weigh disproportionately on the shares. Infineon shares trade 1.6% lower at 75.51 euros. (mauro.orru@wsj.com)

0916 GMT - European natural-gas prices climb after the U.S. attacked targets in Iran and QatarEnergy extended a force majeure clause on some LNG deliveries. In mid-morning trading, the benchmark Dutch TTF front-month contract is up 4.6% to 47.57 euros a megawatt hour. Energy prices rebounded after the U.S. military carried out what it described as defensive strikes, adding to uncertainty surrounding a potential peace deal with Iran and the reopening of the Strait of Hormuz. Meanwhile, Italy's Edison said it received a further extension of the force majeure notice from QatarEnergy covering an additional five LNG cargoes after Iranian attacks damaged facilities earlier this year. (giulia.petroni@wsj.com)

0913 GMT - Barry Callebaut needs to focus on simplification, improved commercial execution, and higher-yielding segments, Tom Sykes at Deutsche Bank says. Sykes says new CEO Hein Schumacher has previously indicated that these need to be done, and that he expects Schumacher to explain his new strategy during a company event on June 2. Improving commercial execution and service levels will have costs associated, Sykes says. Shares are unchanged at 1,210 Swiss francs. (aimee.look@wsj.com)

0908 GMT - Iberdrola has a once-in-a-generation growth opportunity, Barclays analysts write, as they upgrade the stock to overweight and raise their target price by 34% to 22.60 euros. The Spanish utility has sector-leading earnings per share growth potential of close to 11% over 2026 to 2030, as well as higher than average total shareholder returns, the analysts forecast. Artificial intelligence-fueled electricity demand growth and Iberdrola's pivot to regulated networks in the U.K. and U.S. provides an earnings tailwind, they add. Its strong balance sheet can finance these growth opportunities, they add. Shares rise 1.7% to 20.08 euros. (adam.whittaker@wsj.com)

0905 GMT - The European Union has ambitious plans to boost its ailing industrial sector, but it could end up doing more harm than good, Commerzbank's Joerg Kraemer says in a note. The Industrial Acceleration Act aims to increase the GDP share of industry to 20% by 2035 from 14%. This could lead to higher paid jobs and technological advancement, Kraemer says. But it may be incompatible with a market economy. The plan overlooks the tendency for industrial decline in advanced economies. The act also stipulates that value creation should come from within the EU, restricting choice and raising costs, Kraemer adds. "All in all, the Industrial Acceleration Act stands for a dirigiste economic policy under which, in the end, even industry itself is likely to suffer." (don.forbes@wsj.com)

(END) Dow Jones Newswires

May 26, 2026 07:59 ET (11:59 GMT)

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