The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0739 GMT - HD Korea Shipbuilding & Offshore Engineering is set to benefit from strong growth at its subsidiaries, says Lee Jae-hyuk at LS Securities. The analyst expects the share of higher-end LNG and LPG carriers in the total shipbuilding lineup to expand through 2029 at the South Korean holding company's unlisted local subsidiary HD Hyundai Samho, which posted an industry-leading operating profit margin of 22.5% in 2Q. Lee is also positive about brisk contract wins by the holding company's affiliated overseas shipyards in the Philippines and Vietnam to build tankers. LS maintains a buy rating and 440,000-won target price on the stock. Shares closed 1.4% lower at 346,500 won. (kwanwoo.jun@wsj.com)

0737 GMT - It may take time for AI monetization to translate into higher valuations for Chinese tech companies, Daiwa analysts say in a research note. Chinese foundation models are gaining credibility, but economics remain under assessment. Investors are aware of the competitiveness of Chinese models, but continued evidence on sustainable pricing power and margin improvement will likely be required, they say. "We are likely more positive than the market on the path of AI monetization, particularly through cloud revenue growth, gaming productivity gains and foundation-model adoption," Daiwa says. (tracy.qu@wsj.com)

0737 GMT - Mobico's second-quarter revenue growth isn't expected to be a major share driver given that operating profit guidance remains unchanged, RBC Capital Markets analysts Ruairi Cullinane and Jakub Glinkowski say in a note. The London-listed transport operator's overall top-line trends are strong and driven by growth at ALSA and German Rail. Still, it continues to face challenges in the U.K., where passenger numbers are down in both Bus and Coach, the analysts say. "We see elevated upside potential in some scenarios, although we think other stocks in the sector offer more attractive risk-reward and trade on larger discounts to long-term average enterprise value valuation multiples," RBC says. Shares are up 2.7% at 24.02 pence. (anthony.orunagoriainoff@dowjones.com)

0732 GMT - Goldman nudges oil-price forecasts higher on the assumption that Mideast shipping disruptions will continue into 2027. But the revision is modest as OECD commercial oil inventories--a key predictor of crude prices--have barely drawn down since the war began and Mideast supply adaptation will likely continue. GS estimates that the global oil market deficit has narrowed from about 7 million barrels a day in March to 1 million in 3Q as Gulf output partially recovered. It assumes new pipeline capacity will come online in late 2027, and that the UAE and Saudi Arabia will eventually deploy spare capacity. Gulf liquids output has already improved and could return to pre-war levels by 2H 2027. (fabiana.negrinochoa@wsj.com)

0724 GMT - European stock indexes mostly edge lower in early trade, with higher oil prices weighing on sentiment. The Europe-wide Stoxx 600 is 0.3% lower, dragged by inflation-vulnerable stocks. London's FTSE 100 is about flat, with rising oil majors cushioning other losses. In Paris, the CAC 40 falls 0.25% as Societe Generale slides 2.2%, while luxuries continue to weaken. The German DAX loses 0.2% as chip maker Infineon drops 2.45% after a broker downgrade. Italy's FTSE MIB falls 0.2%, while the Spanish IBEX 35 slips 0.3%. The Dutch AEX is 0.1% higher despite ASML weakness, as beer maker Heineken rises 1.2%. Elsewhere, Novartis shares slide close to 10% after the Swiss drug maker recorded its third trial disappointment in the space of a week.(josephmichael.stonor@wsj.com)

0722 GMT - BP stock could become 30% more valuable relative to its performance if its current oil and gas exploration efforts are successful, Citi analysts write. The giant Brazilian offshore discovery Bumerangue is its hottest prospect, and combined with efforts in the U.S., Venezuela and Iraq, the British energy company's oil supply lifespan could grow to 14 years from the seven years reported at the end of 2025, they write. BP's reserve life outside its U.S. BPX business has fallen behind peers after it invested heavily in a pivot toward renewable forms of energy that dented its valuation, they say. BP's shares rise 0.8% to 550 pence. (adam.whittaker@wsj.com)

0715 GMT - Nabtesco's marine vessel equipment business is likely to deliver higher sales, based on its recent investor relations day, Nomura's Kentaro Maekawa says in a research report. It's now guiding for 2026 sales at this business, which forms part of the transport solutions segment, of 31.2 billion yen versus prior guidance of Y28.1 billion, the analyst notes. This reflects strong recovery and growth in the shipbuilding market, increased usage per ship of the Japanese company's electronic control valves, and rising prices for remote control systems. The brokerage raises the stock's target price to Y5,300 from Y4,600 with unchanged neutral rating. Shares closed 6.1% lower at Y4,337. (ronnie.harui@wsj.com)

0714 GMT - Saab is a great business at a demanding price, AlphaValue analyst Saima Hussain writes. The Swedish company is one of Europe's few remaining full-spectrum sovereign defense groups, with its record backlog providing several years of activity coverage across its major business areas, Hussain says. The company's strong growth profile and strategic positioning justify a premium. However, that premium must also account for the capital intensity of the ramp-up, uneven divisional economics, milestone-dependent cash conversion and Saab's more limited geopolitical reach, Hussain adds. "The issue is not the quality of the asset, but the valuation: our target price leaves essentially no upside despite incorporating a premium for Saab's superior growth profile." AlphaValue initiates coverage of the stock with a reduce rating and a 593 Swedish kronor target price. Shares fall 0.8% to 577.60 kronor. (dominic.chopping@wsj.com)

0709 GMT - Japan's Terra Drone plans to significantly boost domestic parts usage in its Terra B1 interceptor, founder Toru Tokushige says in an interview with The Wall Street Journal. The B1 currently relies on roughly 20% local sourcing, as it was built in just three months via a government fast-track program, he says. He is urging Japan's Defense Ministry to mandate a 65% domestic parts quota for military drones, similar to U.S. procurement rules, and is also aiming to achieve 65% domestic procurement for the B1. Terra Drone has partnered with Japanese precision manufacturers to develop components like batteries--the costliest part of a drone.(megumi.fujikawa@wsj.com)

0705 GMT - Computacenter's raised guidance should drive consensus upgrades to adjusted pretax profit forecasts, J.P. Morgan analysts write in a note. The FTSE 100 technology and services provider lifted its full-year outlook after reporting higher results driven by its North American segment. The company has delivered a very strong first-half performance, they say. Rising demand for artificial intelligence and growth in North America remain the company's key underlying growth drivers, the analysts note. "We expect low-to-mid teens upgrades to consensus adjusted pretax profit forecasts," they add.(najat.kantouar@wsj.com)

0659 GMT - Sandoz Group's roadmap for the years ahead is likely to be well received by investors, Vontobel's Stefan Schneider says in a research note. The Swiss maker of generic medicines confirmed its 2028 outlook, set out new 2030 guidance that is ahead of Vontobel's estimates, and projected an acceleration in growth through 2035, the analyst says. The company aims to more than double net sales by 2035 relative to 2025, supported by plans to have 100 biosimilars--copycat biologic drugs--in its portfolio by 2040. "Biosimilars are key to Sandoz, as they drive growth and margins, while generics provide the necessary cash generation. With many biologics set to lose patent protection in the coming years, the market opportunity is considerable," Schneider says. (adria.calatayud@wsj.com)

0658 GMT - Reckitt has become much more attractive after disposing of its essential home business, analysts at Bernstein say. The disposal has left a more focused health and hygiene portfolio with brands that lead the category, they add. However, the company still remains one of the more polarizing names in European staples, as it has lost sight of sustainable organic growth, the analysts say.