1506 GMT – Large trucking operators probably won’t take advantage of the federal tax deferral for on-road use of dyed diesel given the complications, Gas Buddy’s head of petroleum analysis Patrick De Haan says on X. “Interstate trucking means a patchwork of state rules and tax headaches, and most major truck stops don’t sell dyed diesel,” he says. For most diesel users the deferral of the 24.4 cents a gallon excise tax won’t change much at the pump, he adds. “Big fleets will likely sit this out.” (anthony.harrup@wsj.com)
1354 GMT – British Airways owner International Consolidated Airlines Group and Ryanair are the best protected in the sector, Bernstein’s Alex Irving and Antoine Madre write. “Both should benefit whether fuel prices fall or remain elevated, as weaker competitors would come under greater pressure to reduce capacity,” they say. They add that winter is likely to be particularly challenging for European airlines given high fuel costs. Bernstein has outperform ratings on both airlines’ stock. It has a 30 euro target price on Ryanair and a 550 pence target on IAG. (ian.walker@wsj.com)
1224 GMT – Daimler Truck’s North America order intake for September and October will attract much of the focus when the truckmaker reports third-quarter earnings, UBS analyst Hemal Bhundia writes. The bank says 2027 order books for North America have opened, but it believes manufacturers might be taking a more careful approach to truck pricing in the region. UBS expects an update on fourth-quarter price-cost dynamics to confirm pricing is being passed on to offset higher costs, as well as how the production ramp-up is faring. It lowers its price target on the stock to 44 euros from 47 euros and keeps its rating at neutral. (dominic.chopping@wsj.com)
1031 GMT – BMW’s 2028 auto EBIT margin of 3%-5% looks cautious and achievable, but Alpha Value is far more skeptical of a planned return to its strategic 8%-10% target by early next decade. The targets were delivered at an investor event last week, with BMW outlining measures such as a focused, regionalized portfolio, cost cuts, AI-driven efficiency and leaner structures. However, Alpha Value analyst Adrien Brasey says longer-term profitability will probably be capped by structural market changes. “The CMD confirmed a credible direction but offered no catalyst,” Brasey says. Alpha Value believes the shares are close to their trough, but it sees limited upside. It rates BMW at reduce with a 60.90 euro target price. (dominic.chopping@wsj.com)
0957 GMT – Mercedes-Benz’s car EBIT margins could fall below 3% this year while profitability might not recover as much as Citi had hoped next year, the bank says. However, much of this is discounted in the current share price, it adds. After the recent Volkswagen, BMW and Volvo Car profit warnings, it is clear that European autos continue to face severe earnings challenges in the second half of the year, Citi says. Key incremental pressures are coming from a combination of the continued deterioration in the Chinese market, much higher EU electric-vehicle penetration, global price competition, and higher raw materials costs, it says. The bank lowers its target price for Mercedes-Benz stock to 42 euros from 51 euros and keeps its neutral rating. (dominic.chopping@wsj.com)
2231 GMT – Morgans junks expectations of distribution growth by Transurban in the wake of its A$4.5 billion acquisition of Canada Pension Plan Investment Board’s stake in companies that...
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing