Goldman Sachs has cut its KOSPI target by 25% but still sees more than 60% upside from current levels: memory earnings have already been heavily discounted, and non-memory stocks also trade at a valuation discount, while persistent outflows continue to weigh on market pricing.
Bank of America’s third-quarter preview maintains Buy ratings on NetEase and Bilibili and a Neutral rating on Tencent Music: NetEase benefits from PC games and a low comparison base, Tencent Music’s revenue growth is unlikely to drive profit growth, and Bilibili faces margin pressure from slowing advertising and game revenue sharing.
Excluding the impact of VAT reform, China Telecom’s service revenue was broadly flat in the first nine months; however, higher personnel costs in the third quarter offset some of the savings. BofA remains positive on the core telecommunications business and monetization of cloud and AI, maintaining Buy on the H shares and Neutral on the more fully valued A shares.
Tonghuashun’s net profit rose 53% year on year in the third quarter of 2026, benefiting from business growth and deferred revenue recognition. However, growth in sales cash receipts slowed to 9%, and contract liabilities fell 8% quarter on quarter. BofA maintained its Buy rating while cutting its earnings forecasts and target valuation, lowering its price target from 290 yuan to 255 yuan.
Software budgets are expected to grow 5.3% in 2027, with AI receiving both new funding and money reallocated from existing budgets. But only 17.2% of respondents have achieved measurable enterprise-wide returns; how much revenue cloud, security and application vendors capture depends on deployment costs and actual benefits.
French risks are weighing on the euro, but pricing constraints affect both the dollar and sterling. BofA prefers to express a short euro position against the yen. Emerging-market carry returns have generally risen, masking the erosion of buffers in currencies that previously held up well.
A decline in risk assets supported US Treasuries, but BofA still expects a Federal Reserve rate hike. French government bonds lack new buyers, while the ECB faces pressure to reassure markets. Australian and Japanese rates trades depend on how much tightening is already priced in.
US stocks fell as Treasury yields declined. BofA believes markets are worried about whether AI investment can be converted into profits. Risk aversion raises the bar for a Federal Reserve rate hike in October, but the energy shock and underlying inflation still support further tightening; the European Central Bank is more likely to wait, while the Bank of England faces more immediate pressure to act.
DRAM prices continue to strengthen, while consumer NAND is becoming subdued. BofA believes a shift in supply toward HBM and servers, together with low channel inventories, could extend the upcycle; growing cash flow at SK hynix and Samsung could support additional dividends and buybacks.
CTI’s third-quarter revenue rose 14% year on year and net profit attributable to shareholders rose 15%, but gross margin fell below BofA’s forecast. The pharmaceutical business’s return to profitability, improved collections and overseas acquisitions support BofA’s medium-term growth outlook. BofA has slightly lowered its earnings forecasts and price target while maintaining its Buy rating.
BofA cut its 2026 and 2027 earnings forecasts for Hesai by 44% and 22%, respectively, and lowered its price targets, but maintained its Buy rating. Automotive demand is weighing on current profits, while spatial cameras and actuator modules underpin its long-term view. The key is progress on orders and deliveries for the new businesses.
Glodon’s third-quarter revenue fell 2% year on year, coming in 4% below BofA’s forecast; lower administrative expenses supported broadly flat profit. AI products are entering commercialization, but weak demand along the property value chain continues to weigh on the core business. BofA cut its earnings forecasts and maintained its Underperform rating.
Revenue from 3C equipment in the first three quarters already exceeded the market’s previous full-year expectation, and the company also secured its first orders for 3D printing equipment. But third-quarter profit fell sequentially. While maintaining its Buy rating, BofA cut its target price from 185 yuan to 152 yuan because of lower valuation multiples and free cash flow forecasts.
Bank of America raised its revenue forecast and price target for Meta but slightly lowered its 2027 earnings-per-share estimate: advertising is benefiting from AI, while Muse and enterprise services open up new revenue opportunities, but investment comes before monetization, and capital spending and financing pressure are both rising.
Kering’s third-quarter revenue met market consensus, but Gucci retail sales fell 9% year on year, missing expectations; wholesale shipments temporarily cushioned the decline. The company withdrew its full-year revenue growth guidance. BofA cut its price target from €280 to €250 and maintained its Neutral rating.
BofA cut its forecast for Abbott’s 2027 comparable sales growth to 6% but maintained its buy rating: new electrophysiology products and expanded Libre reimbursement offer upside, while a nutrition spin-off could lift valuation. Pricing and competitive pressures have already affected recent growth.
Pressure on French government bonds and weakness in technology stocks drove Treasuries higher, but JPMorgan believes near-term valuations have become expensive and prefers a trade betting on a wider spread between 10-year and 30-year yields. Auction data show that foreign and long-end demand remains strong, although buyers have become more price-sensitive across most maturities.
Pressure on European sovereign bonds and concerns over AI valuations are driving safe-haven demand for US Treasuries, but JPMorgan believes the 10-year yield is already about 15 basis points below its model-implied fair value. Credit market pressure is concentrated in major cloud providers and lower-rated bonds, while ABS and agency CMBS are relatively resilient.
After the BGB-58067 sample was expanded, the objective response rate fell from 31.7% to 25.3%. However, newly disclosed data on duration of response, progression-free survival and intracranial efficacy led JPMorgan to continue supporting a pivotal lung cancer study in 2027.
In the adjuvant pancreatic cancer data, 11 of 20 evaluable patients remained recurrence-free. JPMorgan believes the current efficacy evidence remains difficult to distinguish from chemotherapy alone, while Moderna’s valuation already incorporates expectations for broader indications and platform value.
