FINWIRES · TerminalLIVE
FINWIRES

Asian Development Bank Tempers APAC GDP Forecasts for 2026

-- The Middle East outlook and consequent higher oil prices will temper the economic expansion of developing countries in the Asia Pacific in 2026, reported the Asian Development Bank (ADB) late Friday.

Economic growth in developing Asia is expected to slow to 5.1% in both 2026 and 2027, down from the previous 5.4% estimate, weighed down by the Persian Gulf conflict and continuing trade uncertainty, said the ADB.

The Asian Development Bank (ADB) makes economic projections for developing nations in Asia, focusing on gross domestic product (GDP) growth and inflation outlooks. The ADB forecasts cover 46 nations, including China and India, and all 10 ASEAN members.

"Higher energy prices will raise production costs and consumer prices, while export growth will normalize following last year's front-loading ahead of US tariff increases," said the ADB. "Solid domestic demand---particularly in South Asia and developing Southeast Asia---will continue to anchor growth."

Regional inflation is projected to rise to 3.6% in 2026 and 3.4% in 2027, up from 3% last year, added the ADB.

GDP growth in China is projected to decline to 4.6% in 2026 and 4.5% in 2027, down from 5% in 2025, "with continued property market weakness and slower export expansion expected to weigh on activity," said the ADB.

"In India, growth is forecast to ease to 6.9% this year from 7.6% last year, before rising to 7.3% next year, underpinned by resilient domestic consumption," added the ADB, a Manila-based regional bank that lends on infrastructure and other projects.

Related Articles

Research

Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Baker Hughes

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $14 to $82, reflecting a combination of our sum-of-the-parts (SOTP) and DCF models. For our SOTP model, we presume the oilfield services business (about 50% of BKR's franchise) to be valued at about 10x projected 2027 EBITDA (in line with major peers) and its industrial energy technology business (the other 50%) valued at 14x projected 2027 EBITDA (in line with the peer median). This blended approach, yielding a 12x multiple, implies a value of $73 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 5% per year, terminal growth of 2.5%, discounted at a WACC of 6.3%, yields intrinsic value of $91 per share. We cut our 2026 EPS estimate by $0.47 to $2.48, but we raise 2027's by $0.07 to $3.24. We acknowledge that the oilfield services business is likely to struggle in 2026 owing to the U.S.-Iran conflict, but the IET business appears quite robust and likely to be a source of both accelerating revenue growth and margins.

$BKR
Research

Research Alert: CFRA Maintains Hold Opinion In Shares Of Wab

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target to $285 from $275 following WAB's Q1 earnings print, valuing shares at 24.2x our 2027 EPS outlook of $11.76 (revised from $11.46; 2026 EPS estimate up to $10.57 from $10.50), a slight premium to WAB's long-term historical multiple average given structural improvements in earnings quality. While we are cautious on signs of overcapacity in the freight market, an elevated order backlog (12-month sits at over $9 billion), internal initiatives to shore up margins, and potential synergies from M&A activity positions WAB to continue growing earnings at double-digit rates in 2026-2027, in our view. Despite tariff-related cost pressures, WAB has done a commendable job of defending margins via a mix of pricing, lean manufacturing, and pruning of lower-profit operations. Q1 results were mixed but overall positive, in our view. We maintain our Hold recommendation on shares.

$WAB
Research

Research Alert: CFRA Keeps Buy Opinion On Shares Of Centerpoint Energy, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target by $1 to $47, 24.1x our next-12-month EPS estimate, a premium to CNP's five-year average of 19.7x. Our 2026 EPS view is unchanged at $1.91, and we initiate our 2027 EPS view at $2.08. EPS guidance was maintained during Q1 earnings, and the $65.5B 10-year capital investment plan was reaffirmed. Notably, this was the first quarter in nearly two years without an increase to the 10-year capital plan. However, management is evaluating over $10B in incremental opportunities and expects to provide updates following a transmission planning refresh in 2H 2026. The company sees 11% or higher rate base growth potential through 2030, which we think would be among the fastest in the multi-utilities sub-industry. In the longer term, we look favorably on CNP's 7%-9% adjusted EPS CAGR target through 2035, with expectations of reaching the 8%-9% mark from 2026-2028, both of which would likely lead most peer utilities, in our view.

$CNP