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Auto & Transport Market Roundup: Key Updates

Wall Street Journal Markets •
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Thai Airways International’s 3Q outlook is likely improving, according to UOB Kay Hian analysts. Following a drop in jet fuel prices in June, the airline has increased its hedging position to 40% of its total fuel usage for the second half of the year. Additionally, stronger flight demand is expected, leading the brokerage to upgrade the stock's rating to buy and raise the target price to 6.80 baht.

In the U.S. auto market, shoppers are becoming more selective, favoring SUVs and hybrids. According to Kelley Blue Book Brand Watch, Kia and Subaru were the only non-luxury brands to gain shopper consideration during the first half of the year. Vanessa Ton of Cox Automotive noted that value-oriented SUVs are currently the heart of the market due to affordability challenges.

Finally, Continental’s second-quarter performance could trigger EBIT upgrades, per UBS analyst David Lesne. While the tires EBIT margin remains above the full-year guidance range of 13%-14.5%, the bank suggests the outlook could be raised later this year. Continental is expected to return approximately 12 euros/share to shareholders in the coming quarters.