Basic Materials Roundup: Market Talk

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0230 ET - Aether Industries is likely entering a growth phase, with the company ramping up the execution of new contracts it signed over the past two years, Ambit Capital analysts say in a research report. They expect the contracts' contribution to the Indian chemical manufacturer's earnings to rise to 43% in FY 2028 from 10% in FY 2025. The growing share of contract manufacturing will likely bring scale to the company and reduce the business's working-capital requirement to around 160 days over the next five years from roughly 240 days over the past five years. The brokerage initiates stock coverage with a buy rating and a target price of INR925.00. Shares are 1.9% lower at INR739.00. (ronnie.harui@wsj.com)

2351 ET - Macquarie reckons a new lithium cycle could be emerging. Supply disruptions are evident due to mining license suspensions and resource audits in China, Macquarie analysts say in a note. There are also local security challenges in Mali, and increased regulatory scrutiny in Brazil, while low prices have led to project delays, they say. That supply picture is increasingly at odds with lithium demand, which has been solid year to date, say the analysts. Demand has been buoyed by robust growth in electric-vehicle sales and stronger-than-expected battery energy storage system installations. They highlight IGO and Pilbara Minerals as Macquarie's top Australian lithium picks, adding that Liontown and Sayona also offer leverage to lithium prices. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2120 ET - Alamtri Resources Indonesia's 2026 net profit is likely to grow 19% on some tailwinds, UOB Kay Hian's Benyamin Mikael says as the brokerage upgrades the stock to buy from hold. Tailwinds include stable metallurgical coal prices, a higher sales volume, the start of its aluminum project, the analyst says in a research report. Further progress in the mining and energy company's renewable-energy projects such as the Mentarang hydroelectric project in Indonesia could serve as a catalyst in 2026, with the market closely watching developments. However, the brokerage lowers the stock's target price to IDR2,170 from IDR2,600 following a sharp share-price decline year to date. Shares last closed at IDR1,660. (ronnie.harui@wsj.com)

1828 ET [Dow Jones]--The corporate appeal of Astral Resources's Mandilla gold project in Australia just got bigger. Gold Fields's recent ore-purchase agreement with Lunnon Metals for gold to be processed at its St Ives Mill suggests it has idle capacity in the near term, Euroz Hartleys says. Astral owns the Theia open-pit deposit at Mandilla, which is some 28 miles from St Ives. Astral ended Monday at A$0.215. That's below Euroz Hartleys's A$0.44/share price target. "Astral's Mandilla project is not just strategic for Gold Fields," analyst Kyle De Souza says. "Companies with a heavy underground portfolio that lack grade (less than 3 grams/ton) will see cost escalation and margin compression faster than open pits and will be forced into considering open pit 'hedges' against cost escalation underground." (david.winning@wsj.com)