Auto & Transport Roundup: Market Talk

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.

1312 GMT - Maersk and Hapag-Lloyd appear fairly priced for sustained higher freight rates, Deutsche Bank analyst Harishankar Ramamoorthy writes. Container shipping companies posted strong second-quarter results, as they benefited from the high rates. Deutsche Bank says the key question now is how long could freight rates remain elevated. "We believe the rest of 2026 could see higher rates prevail, but incremental supply in 2027 and a potential Red Sea reopening should be headwinds." The bank retains its hold rating on both Maersk and Hapag-Lloyd. It raises its Maersk target price to 17,123 Danish kroner from 14,030 kroner, and raises its Hapag-Lloyd target to 117 euros from 114 euros. Maersk shares fall 0.1% to 20,720 kroner, Hapag-Lloyd shares fall 1.8% to 133.70 euros. (dominic.chopping@wsj.com)

1104 GMT - Daimler Truck's investment case increasingly hinges on investors' belief that management can improve the Mercedes-Benz margin and achieve its 2030 targets of an 8%-12% margin, Bernstein analysts write. The Mercedes-Benz business has been losing share across key European markets, which Bernstein views as symptomatic of weaker product competitiveness and brand perception. The Mercedes-Benz trucks segment faces increased competition in 2027, while structural factors weigh on profitability, including greater exposure to lower-margin Western European markets. German headcount reduction targets don't appear to be materializing, while a production shift to low-cost countries is unlikely to accelerate until 2030. The bank lifts its stock-price target to 39 euros from 37 euros and keeps its underperform rating. Shares rise 0.6% to 45.49 euros. (dominic.chopping@wsj.com)

1055 GMT - Middle East crude exports fell sharply last week, with flows averaging 6 million barrels a day through Aug. 16, down 2.2 million barrels a day from the previous week, according to Morgan Stanley. Tanker traffic through the Strait of Hormuz has weakened further. Outbound energy-vessel transits are averaging just four a day this week, down from six last week, while inbound traffic has held at six. Both remain far below preconflict levels of 25 to 30 vessels a day in each direction. Alternative routes are offering limited relief. Saudi Arabia's Yanbu port crude loadings remain around 2 million barrels a day, with most cargoes moving north through the Sumed pipeline. Flows through Bab el-Mandeb strait are below 1 million barrels a day, though Morgan Stanley says those figures could be revised in the coming days due to so-called "dark transits." (giulia.petroni@wsj.com)

1016 GMT - Pirelli earnings remain broadly in line with consensus and valuation leaves limited near-term upside, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. The bank retains its neutral rating on the stock. Meanwhile, J.P.Morgan remains overweight on Continental, with resilient tire profitability, a supportive price/mix and improving currency offsetting continuing volume and raw-material headwinds. Pirelli shares rise 0.2%, while Continental shares rise 1.4%. (dominic.chopping@wsj.com)

1008 GMT - Nokian Tyres earnings momentum should improve materially, driven by its manufacturing ramp-up and premium mix shift, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. However, the bank remains cautious given execution risks around the company's 2029 targets and elevated leverage. It upgrades the stock to neutral from underweight. Shares rise 5.8%. (dominic.chopping@wsj.com)

1001 GMT - Michelin should find support from improving truck replacement demand, structural growth in its polymer-composite solutions unit and demand for premium tires, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. This will underpin margin recovery. The bank upgrades the stock to overweight from neutral. Shares rise 1.9%. (dominic.chopping@wsj.com)

0616 GMT - Dhoot Transmission stands to benefit from electrification of two- and three-wheelers in India, Ambit Capital analysts say in a research report. Pace of electrification will likely be fastest in two-wheelers, leading to quick increase in the company's total addressable market as content per vehicle in electric two-wheelers is around twice that in internal combustion engine two-wheelers. The electrical systems manufacturer's non-wiring harness portfolio of battery packs, sensors, controllers, and chargers also allows it to capture India's widening electrical and electronics market. The brokerage initiates coverage of the stock with a buy rating and a target price of 1,598.00 rupees. Shares are 5.0% higher at 1,473.00 rupees. (ronnie.harui@wsj.com)

0455 GMT - ComfortDelGro's loss of two bus packages in Singapore remains a near-term headwind, UOB Kay Hian analysts say in a research report. Its Tampines Bus Package was handed over to Go-Ahead Singapore from July 2026, while its subsidiary SBS Transit will hand over the Serangoon-Eunos Bus Package to SMRT Corp. from June 2027, the analysts note. These losses will weigh on the transport operator's Singapore bus revenue. The brokerage cuts its earnings forecasts for ComfortDelGro by 8.7% for 2026, 12.6% for 2027, and 11.4% for 2028. It lowers the stock's target price to 1.41 Singapore dollars from S$1.54 with an unchanged hold rating. Shares are 0.75% higher at S$1.34. (ronnie.harui@wsj.com)

0320 GMT - Toyoda Gosei's profit growth is likely to exceed market expectations, Citi Research's Arifumi Yoshida says in a research report. Drivers include growing demand for Toyota Motor's new 'RAV4' model, which uses more of Toyoda Gosei's parts per vehicle and sales growth in the India business, the analyst says. RAV4 production increases from end-2026 onward alongside its main customer also entering an expansionary output phase could benefit the Japanese automotive parts manufacturer further, Yoshida says. Citi upgrades the stock's rating to buy from neutral and raises the target price to 6,600.0 yen from Y5,000.0. Shares are 5.1% higher at Y5,309.0.(ronnie.harui@wsj.com)

1646 GMT - 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)

(END) Dow Jones Newswires

August 20, 2026 12:20 ET (16:20 GMT)