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

0812 ET - Canadian software company Enghouse Systems hasn't made an acquisition in nearly a year, and organic growth isn't picking up the slack. RBC's Paul Treiber says 3Q will likely be below consensus expectations "due to likely continued negative organic growth and negative operating leverage." He estimates organic growth will fall by 12% in constant currency on "macro uncertainty delaying deals, reduced license and maintenance revenue from ongoing churn, and competition from vendors marketing new [artificial intelligence]-powered offerings." The analyst notes Enghouse has gone on without an acquisition in 10 months, which he says is one of the longest gaps in the company's history. (adriano.marchese@wsj.com)

0812 ET - Lululemon Athletica's worsening Chinese business has added new uncertainty to the company's potential recovery. The Mainland China business had been one of the few bright spots and the strongest regional contributor to sales, Stifel analysts say. Yet executives say the Chinese market had a bad second quarter. Management now expects sales to grow by a high single-digit percentage, down from its prior guidance of roughly 20% growth, Truist analysts say. The unexpected downturn adds to investor concerns about a lack of visibility into when earnings may hit bottom, the Truist analysts add. (katherine.hamilton@wsj.com)

0756 ET - Sterling looks vulnerable over the coming months as the U.K. is expected to face increased inflationary and fiscal pressures, RBC BlueBay Asset Management's Mark Dowding says in a note. The U.K. is exposed to greater inflationary pressure from high energy prices than its eurozone peers as it lacks gas storage facilities, Dowding says. In addition, high government borrowing costs could put further strain on public finances and hurt the economy, he says. RBC BlueBay Asset Management has an underweight position on sterling as its sees few catalysts that would support a rally in the currency over the coming months. Sterling edges up 0.1% to last trade at $1.3533. (miriam.mukuru@wsj.com)

0748 ET - Investors still have a lot of unanswered questions about why Lululemon is struggling so much, Stifel analysts say. Lululemon slides 20% after 2Q sales fall steeply and guidance is cut again. While Lululemon's North American business is continuing to decline, its Mainland China business also had a surprising reversal after previously being the strongest regional contributor to sales, the analysts say. "We believe shares deserve a valuation discount given challenging visibility, poor traffic trends, and new questions around China growth potential," the analysts say.(katherine.hamilton@wsj.com)

0739 ET - Jefferies had been expecting that Lululemon's 2Q results wouldn't move the needle much. "We spoke too soon," they say. Lululemon plunges 20% after the retailer cut its outlook for the second time this year. The latest results show brand momentum continuing to fade, market share losses mounting and margins continuing to narrow, the analysts say. Lululemon is still dealing with high costs because its prior leadership opened more, bigger stores, they say. The analysts expect margins and EPS to keep dropping. (katherine.hamilton@wsj.com)

0701 ET - BRP is navigating tumultuous tariff waters better than feared, TD Cowen analyst Brian Morrison says, noting that management reduced its F2027 net tariff exposure to around C$200 million from its prior guidance of C$300 million to C$350 million. Part of this is because BRP is launching a new side-by-side vehicle engineered to fit into lower-tax trade categories, bypassing higher import duties. "This should be complemented by reduced tariff rates on ATVs in June, partially offset by the commencement of S338 tariffs upon Spyder 3WVs," Morrison says. What's more, the company expects FY2028 tariff exposure to be C$225 million, "which we view as well below what we estimate is in consensus ($350mm-$375mm)." (adriano.marchese@wsj.com)

0657 ET - Palm oil closed higher on stronger soybean oil prices and ongoing concerns about medium-term output amid El Nino weather conditions affecting Malaysia and Indonesia, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng sees support at 4,900 ringgit a ton and resistance at 5,050 ringgit a ton. The Bursa Malaysia Derivatives contract for June delivery ended 27 ringgit higher to 4,931 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0653 ET - Computacenter shares have further to rise as investors are underestimating the power of growth drivers behind the stock, UBS analysts write. Shares in the London-listed company, which sources data center infrastructure and compute architecture, have already risen by over 80% so far this year. A combination of rebounding German demand, hyperscaler capital expenditure and companies refreshing their IT equipment will all boost the stock more than the market expects, the analysts say. Recent compute deals suggest hyperscaler spending is resilient and enduring, they say. For example, SpaceX--a key Computacenter customer--recently sold compute capacity well ahead of market rates, the analysts note. Shares rise 3%, leading London's FTSE 100. (josephmichael.stonor@wsj.com)

0640 ET - Zara owner Inditex is able to sell fashion in a more accurate and timely way than its peers due to its distinctive supply chain, Jefferies analysts write. "The Zara store refresh program underpins a transformational change in the shopping experience," they say. The Spanish fashion giant has significant balance sheet strength and strong share-gains potential, they add. Jefferies raises its target price on the stock to 67.00 euros from 62.00 euros and keeps its buy rating. Shares are up 1.1% at 57.44 euros. (ian.walker@wsj.com)

0617 ET - China's trade growth is likely to pick up modestly in August, according to Goldman Sachs in a research note. On exports, high-frequency indicators such as shipping volumes point to a mild recovery, the bank says. South Korea's reported imports from China remained solid, GS adds. "On imports, the ongoing AI capital expenditure boom should continue to support tech-related nominal imports, consistent with strong Korean exports to China in August," GS says. The bank forecasts export growth to rise to 26.0% on year in August from 23.9% in July, and for import growth to accelerate to 32.6% on year from 27.5%. (tracy.qu@wsj.com)

0604 ET - Renishaw can grow significantly without substantial incremental investment, Bank of America analysts write as they double-upgrade the stock. The bank raises its rating to buy from underperform and its target price to 54 pounds from 27.79 pounds. "Existing capacity provides meaningful operating leverage, allowing earnings to outpace revenue," the analysts say. They add that the FTSE 250-listed engineering-technology group has excess cash of 210 million pounds that could be distributed by fiscal 2027. Shares are up 5.1% at 51.45 pounds and 46% higher over the year to date. (ian.walker@wsj.com)

0557 ET - Lululemon's second-quarter results show the brand's momentum is fading fast, Jefferies analysts write. Decisions by the group's previous chief executive to open more and bigger stores have pushed its costs higher, in turn weighing on margins. "Incoming CEO [Heidi] O'Neill has a mountain to climb," they say. The athleisure retailer's margins will keep dropping, and so will its earnings per share, the analysts say. However, the stock may not have much further to fall given the group still has solid cash flows, they add. Lululemon shares tumble 19% premarket.