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.

1246 ET - TD Cowen says BRP's tariff headwinds may be "less onerous" than anticipated, as new product updates could classify several vehicles under utility HTS codes "potentially not subject to S232 tariffs," which "could represent $200mm in relief." Coupled with resiliency of demand, analyst Brian Morrison says BRP could see upward revisions to its estimates. "Ongoing SxS [side-by-side] momentum/share gains," with strength in year-round products like the Can-Am Defender are expected to drive 2Q revenue growth of 6% year-over-year, he says. Morrison raises his rating to buy from hold, and lifts the target price to C$106 from C$92. (adriano.marchese@wsj.com)

1135 ET - Cargojet's strategy to improve revenue quality and better-manage costs appears to be paying off. CIBC analysts say that the benefits of Cargojet is "dynamically redeploying aircraft across the network" as part of its One Fleet Strategy, allowing the company to "absorb this additional volume without adding aircraft as this strategy frees up excess capacity." The analysts say that this is coupled with improvements to the company's procurement process which has helped drive vendor savings. At the same time, maintenance capex is expected to be steady, and minimal growth capex. Taken together, the analyst say this contributes to an improving free cash flow profile and "highlights CJT's healthy FCF growth potential." (adriano.marchese@wsj.com)

1123 ET - Ski-Doo and Sea-Doo maker BRP's new branded financial services offering could be good for dealer and company earnings, says Stifel's Martin Landry. "This new program should provide end-customers with a more seamless financing solution, fast approval and dedicated support," the analyst says in a report, adding that the program should also allow BRP to collect more data on its end-customers, strengthening communications and potentially developing lasting relationships with them. For dealers, he says that the product could also increase their earnings, "as in some instances, financing and insurance can represent up to a third of dealers' profitability." BRP says that up to 70% of all transactions are financed "making this an important factor in purchasing decisions." (adriano.marchese@wsj.com)

1057 ET - The current low water levels of the River Rhine will hurt German manufacturing production in the third and fourth quarters if sustained, Pantheon Macroeconomics' Claus Vistesen says in a note. The gauge at the bottleneck of Kaub reached record lows in August, with vessels potentially forced to carry substantially less cargo. "A prolonged low water level in the Rhine is a negative supply shock to industrial logistics," Vistesen says. Recent data could point to a 6.6% fall in intermediate-goods production--a decent proxy for sensitivity to low water levels--pushing down industrial production by 2.5% over six months, all else being equal, he says. If the heatwave continues, third and fourth-quarter GDP forecasts could get downgrades of between 0.1 and 0.2 percentage points, he says. (edward.frankl@wsj.com)

1003 ET - Germany should invest in expanding its transportation infrastructure in light of supply concerns over the low water levels in the River Rhine, Swiss business lobby Economiesuisse's chief economist Rudolf Minsch says. Companies are waiting for transport solutions from governments, with Swtizerland proceeding only slowly, he says. But the situation in particularly acute in Germany. "As in Basel, shallow-water sections in Germany should also be dredged, particularly in the German Kaub area," Minsch says, referring to the pinch point in the Rhine Valley in northwestern Germany. Firms are still waiting for expanded north-south rail capacity in Germany. "This expansion is constantly being delayed, much to the chagrin of the business community and consumers," he says. (edward.frankl@wsj.com)

0926 ET - Swiss companies are responding quickly to the low water levels in the River Rhine caused by recent heatwaves, avoiding supply crises seen during the Covid-19 pandemic, business lobby group Economiesuisse's Rudolf Minsch says. Goods from northern ports are being rerouted to Switzerland by road or rail, while Genoa is gaining importance as a route into Switzerland, he says. Typically, about 10% of all goods enter Switzerland via the Port of Basel each year. However, rising prices are necessary. "Only then does it make economic sense to operate ships with lighter loads," Minsch says. He argues governments shouldn't intervene to prevent price increases, given the "self-regulating process" of pricing mechanisms that enable diversions, adjustments, and reduced consumption. (edward.frankl@wsj.com)

0627 ET - Hesai Group's 3Q revenue will likely grow 38% to 45% from a year earlier to 1.1 billion yuan to 1.15 billion yuan, Jefferies analysts say in a note, citing management guidance. The company reiterated its full-year lidar shipment target of 3 million to 3.5 million units, they say. Revenue from businesses excluding ADAS lidar is expected to exceed 50% of total revenue in 3Q, highlighting Hesai's expansion into robotics and other physical artificial-intelligence applications, they say. Jefferies maintains its 2026 gross margin guidance at close to 40% and initiates coverage of Hesai with a buy rating and target price of 29.30 Hong Kong dollars. Shares last closed at HK$17.20. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0352 ET - Oil prices rise for a fourth day as talks to reopen the Strait of Hormuz and end the Iran war stall after nearly six months of conflict. In early European trading, Brent crude is up 0.2% at $91.26 a barrel, while WTI futures rise 0.3% to $84.37 a barrel. "Brent crude remains above $90 a barrel as geopolitical tensions and uncertainty surrounding the Strait of Hormuz keep a significant risk premium in energy markets," analysts at IG say. President Trump said Tuesday that there are no ongoing or scheduled talks with Tehran and that the U.S. naval blockade remains in full force. Meanwhile, the U.A.E. halted trade and financial transactions with Iran amid escalating regional tensions. (giulia.petroni@wsj.com)

0034 ET - Airports of Thailand's earnings growth outlook remains bright, UOB Kay Hian analysts say in a research report. The airport operator is adding more routes of revenue while cutting expenses, which will likely be a good earnings driver in addition to a new passenger service charge rate, the analysts say. The brokerage also sees an improving trend in passenger arrivals at the airports operated by AOT in 4Q, which will be positive to its earnings outlook. Management currently targets 2027 total passengers at 128.5 million, up 2% from this year's projected total. The brokerage raises the stock's target price to 85.00 baht from 80.00 baht with an unchanged buy rating. Shares are 0.75% lower at 66.25 baht. (ronnie.harui@wsj.com)

2148 ET - ComfortDelGro's growth is likely to be driven by international expansion, DBS Group Research's Zheng Feng Chee says in a research report. Given Singapore's limited market size, the company has leveraged its strong balance sheet to actively pursue international acquisitions such as A2B Australia, the analyst notes. These acquisitions enhance its geographic diversification, complement existing operations, and are expected to be earnings accretive. DBS raises its 2027 earnings forecast for the transport operator by 5% to reflect faster recovery at London-based Addison Lee and continued U.K. public transport momentum. It raises the stock's target price to 1.40 Singapore dollars from S$1.30 with an unchanged hold rating. Shares are 0.7% lower at S$1.36.