VTEX lowers growth outlook after Q2 subscription revenue miss

Investing.com -- Huitongda Network shares surged 27% in Hong Kong on Friday, marking their largest daily gain ever, after the company signed an artificial intelligence cooperation agreement with Alibaba (NYSE:BABA).

In other market moves, Dongfeng Motor’s Hong Kong-listed shares climbed 9%. Morgan Stanley highlighted improvements in the automaker’s proprietary brands sales, despite a significant decrease in preliminary first-half net profit.

China Mobile (NYSE:CHL) shares advanced after Jefferies raised its price target following the telecommunications company’s first-half results, which were in line with expectations.

Chinese brain technology-related stocks rose for a second consecutive day after the government pledged to push for breakthroughs in the sector.

On the downside, Wynn Macau (OTC:WYNMF) shares declined in Hong Kong after its parent company, Wynn Resorts (NASDAQ:WYNN), reported second-quarter adjusted earnings per share below the average analyst estimate.

MGM China (OTC:MCHVY) shares fell 7%, their largest drop since April 7, after the casino operator reported an 11% decrease in first-half net income.

SMIC shares also dropped after the Chinese chipmaker’s second-quarter net income missed analyst expectations.

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Investing.com – Indonesia stocks were higher after the close on Friday, as gains in the Infrastructure, Financials and Agriculture sectors led shares higher.

At the close in Jakarta, the IDX Composite Index added 0.61%.

The best performers of the session on the IDX Composite Index were Tanah Laut Tbk (JK:INDX), which rose 30.67% or 23.00 points to trade at 98.00 at the close. Meanwhile, Shield On Service Tbk PT (JK:SOSS) added 24.76% or 130.00 points to end at 655.00 and Paperocks Indonesia Tbk PT (JK:PPRI) was up 24.58% or 58.00 points to 294.00 in late trade.

The worst performers of the session were Indokripto Koin Semesta Tbk PT (JK:COIN), which fell 13.83% or 260.00 points to trade at 1,620.00 at the close. Energi Mega Persada Tbk (JK:ENRG) declined 13.39% or 85.00 points to end at 550.00 and Fortune Indonesia Tbk (JK:FORU) was down 13.08% or 225.00 points to 1,495.00.

Falling stocks outnumbered advancing ones on the Jakarta Stock Exchange by 424 to 229 and 186 ended unchanged.

Crude oil for September delivery was up 0.16% or 0.10 to $63.98 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October rose 0.23% or 0.15 to hit $66.58 a barrel, while the December Gold Futures contract rose 0.88% or 30.50 to trade at $3,484.20 a troy ounce.

USD/IDR was up 0.16% to 16,287.90, while AUD/IDR rose 0.15% to 10,639.00.

The US Dollar Index Futures was down 0.19% at 98.04.

Investing.com -- J.P. Morgan has upgraded Sanofi’s (EPA:SASY) rating to “overweight” from “neutral,” setting a December 2026 price target of €105, down from the previous €110, in a note dated Friday. 

The brokerage cited a favorable outlook for two late-stage drugs, amlitelimab for atopic dermatitis and tolebrutinib for primary progressive multiple sclerosis, as key factors behind the change.

Amlitelimab’s Phase III COAST-1 trial results, expected in the third quarter of 2025, are projected to show 28% to 34% placebo-adjusted EASI-75 efficacy at week 24 for a four-week dosing schedule, similar to competing drugs but with less frequent dosing. 

J.P. Morgan estimates the drug could generate €2 billion to €3 billion in peak sales, with further potential if a 12-week maintenance schedule performs well in a separate 2026 trial.

Tolebrutinib’s Phase III PERSEUS trial in primary progressive multiple sclerosis is due in the third or fourth quarter of 2025. 

Prior data from other multiple sclerosis forms suggest the drug could achieve statistically significant reductions in confirmed disability progression, potentially supporting at least €1 billion in sales in this indication alone. 

Across primary and secondary progressive forms, J.P. Morgan forecasts unadjusted peak sales of €2.9 billion.

The brokerage’s revised forecasts reflect 2% to 3% cuts to 2025-2030 sales and business EPS due to currency headwinds, but its 2026 business EPS growth projection remains 11% on an underlying basis. 

Sanofi’s shares are trading at a 20% discount to the sector despite a 2025-2030 EPS compound annual growth rate of 7%, which J.P. Morgan says is 50% above the sector average.

The price target is based on a sum-of-the-parts valuation applying roughly 12 times 2026 estimated earnings per share and including Sanofi’s 47.8% stake in Opella, valued at €3 per share.

Investing.com -- RBC Capital Markets in a note dated Friday said it expects JD Sports Fashion (LON:JD) to recover in fiscal 2027 following a challenging year marked by weaker like-for-like sales and cost pressures. 

Shares of the British sports-fashion retailer were up 2.6% at 04:14 ET (08:14 GMT).

The brokerage maintained its “outperform” rating on the retailer and raised its long-term sales growth forecast to 4% from 3%, citing JD’s potential to gain market share in most regions where its presence remains relatively small.

RBC described fiscal 2026 as a transition year, projecting a 2% year-over-year decline in like-for-like sales and a drop in adjusted pretax profit to £869 million from £923 million in fiscal 2025, partly due to labour and cost headwinds. 

The brokerage expects earnings to stabilize and begin improving in fiscal 2027, helped by a stronger product pipeline from Nike (NYSE:NKE), supply chain efficiencies, and contributions from recent acquisitions such as Hibbett in the U.S. and Courir in Europe.

Nike’s recovery is seen as central to JD’s rebound prospects, with the sportswear brand shifting focus from direct-to-consumer channels back toward wholesale partnerships and introducing more competitive running shoe lines. 

JD, which generates about 45% of sales from Nike products, is expected to benefit from reduced inventory overhang at Nike and an increase in full-price sales. 

RBC forecasts adjusted diluted earnings per share to rise from 10.65 pence in fiscal 2026 to 11.13 pence in fiscal 2027, with revenue increasing to £12.84 billion from £12.58 billion.

The brokerage flagged JD’s relatively low valuation of about 8 times estimated 2025 earnings and a free cash flow yield projected to rise from 8% in 2025 to 10% in 2026. 

RBC’s price target of 95 pence is based on a discounted cash flow model assuming a 4% long-term sales growth rate and an 8% EBIT margin, reflecting what it sees as an undemanding level if JD can deliver sustainable earnings growth alongside Nike’s turnaround.