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.

1408 ET – Rivian Automotive may struggle to deliver on investor enthusiasm for 2026, UBS says, downgrading the stock to sell from neutral. Shares got a bounce from the electric vehicle maker’s December Autonomy & AI Day event, but the analysts say most of the AI related news is already out. They also think expectations for the new R2, a mid-size, five-seat SUV, may be too high. R2 is set to launch in the first half of 2026, but the analysts believe early customers may wait for Gen 3 hardware to become available in late 2026. Rivian is off 8.8%. ([email protected])

0800 ET – Volvo’s January North America orders and 2026 forecasts will be in focus when the company releases earnings, UBS analyst Hemal Bhundia writes. The bank expects a broadly in line fourth-quarter result, with sales of 122.4 billion Swedish kronor, adjusted operating income of 11.2 billion kronor and group margins of 9.1%. “We expect Volvo to state that the North American truck market remains uncertain, which we view as reasonable given the current state of truck fundamentals.” Volvo’s 2026 truck and construction equipment market forecasts will probably remain unchanged, it adds. It expects Volvo to propose an 8.5 kronor ordinary dividend and extra dividend of 6 kronor. UBS increases its price target for the stock to 341 kronor from 318 kronor and keeps its rating at buy. Shares rise 0.6% to 309.30 kronor. ([email protected])

0352 ET – Oil prices slip in early trading after settling 2.5% higher in the previous session, as traders weigh a report that Venezuela has resumed crude exports under U.S. supervision and escalating unrest in Iran. Brent and WTI are both down 0.8% to $64.97 a barrel and $60.68 a barrel, respectively. Caracas has begun reversing production cuts made under a U.S. embargo and is instructing joint ventures in the country to resume output from well clusters, Reuters reported, citing unnamed sources. Meanwhile, “any disruption to Iran’s oil industry threatens up to 3.5 million barrels a day of oil, of which nearly 2 million barrels a day reaches the international market,” ANZ analysts say. Investors now await official Energy Information Administration figures due later on Wednesday following reports that crude stocks in the U.S. rose by 5.2 million barrels last week. ([email protected])

0203 ET – SIA Engineering’s share price is unlikely to see much upside as much of the positives have been priced in, says DBS Group Research’s Jason Sum in a note. DBS downgrades its rating on the stock to hold from buy. The Singapore aircraft-maintenance company’s earnings prospects this year remain favorable, given strong maintenance, repair and overhaul demand, with likely additional capacity, he says. Industrywide maintenance demand remains robust, which could support SIA Engineering’s high utilization, he adds, while capacity expansion and new line maintenance operations could generate incremental growth. DBS retains its S$4.00 target price. Shares fall 1.6% to S$3.62. ([email protected])

0131 ET – Grab’s gross merchandise value and revenue for the on-demand division—combining its ride-hailing and delivery segments—is expected to grow sequentially in 4Q, while its Ebitda margin narrows, say Citi analysts led by Alicia Yap in a note. The Singapore-based technology company’s digital financial services segment could post a higher loss before interest, taxation, depreciation, and amortization in 4Q given higher provisions, they add. Grab’s overall Ebitda is therefore likely to be around the low-end of the company’s guidance range at US$490 million, Citi says. The bank slightly trims its 4Q revenue and adjusted net profit estimates by 0.2% and 2.1%, respectively. Citi maintains its buy rating and US$7.20 target price on the ADRs. The ADRs closed 2.0% lower at US$4.79. ([email protected])

2355 ET – Chinese battery electric vehicle makers BYD and Geely could benefit the most under the EU’s latest guidance on submission of price undertaking offers that allow these BEV exporters to set a minimum import price, says Daiwa analyst Kelvin Lau in a note. This MIP would replace current tariff paid by Chinese automakers. Lau reckons the change is positive for BEV companies that haven’t been undercutting prices in Europe, notably BYD and Geely, as MIP for them must be at least as high as comparable products produced in the EU. These “manufacturers could retain the difference themselves instead of paying to the EU as a tariff, likely improving margins,” Lau says. Players like BYD and Geely will be able to maintain current selling prices and enjoy higher margins, Lau adds. ([email protected]; @ivy_jiahuihuang)

2253 ET – BYD’s battery business is undervalued as it’s viewed by investors primarily as an EV maker, even though it’s a global leader for both segments, say Bernstein analysts in a note. BYD’s valuation appears compressed and overlooks the value and growth potential for its battery assets, they add. The battery segment alone is worth nearly as much as the entire company’s market valuation, implying that the market assigns minimal value to its electronics, semiconductor and other businesses. The company is the world’s second-largest battery manufacturer and shipped 286 GWh of batteries in 2025. BYD’s battery shipments is projected to grow 35% this year, with internal demand rising 22% and external sales up 50%, Bernstein says. It maintains an outperform rating on the stock with a target price of HK$130.00. Shares are last at HK$99.05. ([email protected]; @ivy_jiahuihuang)

2237 ET – The fundamentals for Singapore’s aviation sector remain favorable in 2026, as passenger and air-cargo volume growth will likely be firm, DBS Group Research analysts write in a note. Global air-cargo demand remained resilient last year, despite increased trade tensions and policy uncertainty. This provides a solid base for steady growth in the year ahead, even as global trade flows are expected to slow. Also, consumer-sentiment surveys suggest that global air-passenger traffic is likely to continue to grow at a healthy pace, they say. A recent Skyscanner survey shows that 84% of respondents plan to travel the same number of times or more this year compared with last year. ([email protected])

2204 ET – SATS’s earnings visibility is likely to improve this year, supported by a brighter outlook for air-cargo and passenger volumes, DBS Group Research’s Jason Sum says in a note. Global air-cargo volumes are expected to grow at a low-single-digit percentage pace in 2026, he says, supporting his forecast of a high-single-digit increase in SATS’s tonnage, driven by market-share gains. Sum sees scope for sustained margin improvement from better asset utilization and operating leverage as volumes scale across the Singapore air-cargo handler’s business lines. DBS raises its FY 2027-FY 2028 earnings estimates by 5%-6% to reflect a more constructive air-cargo outlook. The bank lifts its target price to S$4.40 from S$4.00 and maintains its buy rating. Shares fall 0.3% to S$3.80. ([email protected])

2026-01-14T11:35:31Z