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.

1308 GMT – Rivian’s 4Q report underscores progress the electric-vehicle startup is making on several fronts, such as improving margins and ramping production, Stifle analysts say in a research note. The company stands to benefit over the coming year assuming R2 sales come in as strong as they are forecast to, given the very positive pre-production reviews. Additionally, data points to better margins as production of the R2 ramps, expected to occur in the back half of the year, the analysts write. And they forecast continued growth across Rivian’s high-margin software and services business. Stifle reiterates its buy rating and raises its price target to $20 from $17. (connor.hart@wsj.com)

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1253 GMT – Rivian Automotive shares jumped Friday after the electric-vehicle startup logged a smaller-than-expected 4Q loss, but Davidson analysts say in a research note that investors may have gotten too excited about the readout. They note that the company’s R1 outlook was below their expectations, and that the R2 launch comes with significant risks. “To make its current outlook, Rivian will have to deliver the best mid-size EV launch since 2021–without the benefit of tax credits or a mass-channel dealer network,” they write. “A lot has to go right for Rivian to make its numbers this year.” Davidson downgrades Rivian to underperform from neutral and lowers its price target to $14 from $15. (connor.hart@wsj.com)

1036 GMT – Mercedes-Benz guidance disappointed, but the results were sweetened with around 6 billion euros of cash returns in 2026, representing an 11% yield, UBS analyst Patrick Hummel writes. Guidance for the German automaker’s car earnings margin of 3%-5% versus consensus at 4%-6% points to downgrades, he says. However, as shareholders wait for a product- and cost-driven margin recovery, management proposed a surprisingly high dividend and potential further share buybacks. A first tranche of Mercedes-Benz’s shares in Daimler Truck is expected to be sold this year, and UBS expects further sales ahead, boosting cash return potential. “The high visibility on cash returns should provide solid support to the share price.” UBS lowers its share price target to 58 euros from 63 euros and keeps its rating at neutral. Shares rise 1.2% to 58.35 euros. (dominic.chopping@wsj.com)

0932 GMT – Hapag-Lloyd’s deal to acquire Zim offers the German shipping company access to a large block of incremental capacity and could benefit the Gemini network pact it has with Maersk, UBS analyst Cristian Nedelcu writes. Increasing the number of services in the Gemini network would provide greater flexibility to adjust capacity during a downturn, he says. “Nevertheless, at the first sight we see the incremental financial leverage that a potential acquisition will bring as a negative in the context [of] current overcapacity in shipping and large order book.” UBS says the combined Hapag-Lloyd-Zim market share would be around 9.2%, with Hapag-Lloyd currently at 7% and Zim at around 2%. Hapag-Lloyd shares rise 3.4%, while Zim shares rise 38% in premarket trading. (dominic.chopping@wsj.com)

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