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

1004 GMT - 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)

0957 GMT - 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. (josephmichael.stonor@wsj.com)

0951 GMT - Volkswagen's supervisory board approval of a new restructuring plan is a major surprise and represents a fundamental breakthrough for a company many investors had seen as "not fixable," Deutsche Bank analysts write. However, the agreement doesn't solve Volkswagen's challenges overnight, and execution remains key, the analysts say. Deutsche Bank thinks there has been very limited dilution of the board's core transformation targets, aside from a lack of definitive plans to simplify the group structure and close four German manufacturing plants. "Nonetheless, we continue to see it as unlikely that Volkswagen will still produce vehicles at these sites beyond the early 2030s and believe addressing Germany's structural cost disadvantage remains fundamental to any sustainable turnaround." Shares in the German automaker rise 5.5%. (dominic.chopping@wsj.com)

0948 GMT - The Gulf's push to build new trade, energy and logistics infrastructure is likely to continue regardless of the near-term outcome of the Iran war, the Arab Gulf States Institute says. Bypassing the Strait of Hormuz is one objective, but the investment drive extends to pipelines, railways, roads, ports and new economic corridors across the region, says ASGI non-resident fellow Robert Mogielnicki. Saudi Arabia stands to benefit from a westward shift in economic activity, while the U.A.E. is developing eastern export and logistics hubs and Oman is gaining from routes that avoid regional chokepoints. (farhan.rafid@wsj.com)

0947 GMT - Nvidia's acquisition of artificial intelligence startup Hugging Face is a strategic win for the company, Jefferies' analysts write. The roughly $13 billion deal for New York-based Hugging Face is financially immaterial for Nvidia, they say. But the deal will extend Nvidia's reach into the finding, testing and running of AI models, they say. The acquisition will also strengthen Nvidia's engagement with developers, and improve the Santa Clara-based chip company's ties into the open-model ecosystem, they say. Nvidia shares rise 0.8% premarket, after jumping 1.8% in the last session. (josephmichael.stonor@wsj.com)

0907 GMT - Foreign selling of Gulf equities accelerated in August even as regional stock markets rallied, Iridium Advisors says. Net foreign outflows widened to $544 million from $415 million in July, led by $351 million from the U.A.E. and $202 million from Saudi Arabia. Qatar bucked the trend with a $62 million inflow, its first since February. The divergence comes as the MSCI GCC Index gained 3.9% in August, outperforming emerging markets for a second consecutive month, suggesting local market strength hasn't yet translated into a broad return of foreign capital. (farhan.rafid@wsj.com)

0857 GMT - Adobe's long-awaited appointment of insider Anil Chakravarthy as chief executive allows the software group to move past a period of uncertainty, JPMorgan analysts write. Chakravarthy will replace Shantanu Narayen, who moves to the role of executive chair. "We believe the announcement is a positive in relation to addressing the uncertainty that has plagued new investor interest in the shares." Investors will monitor Chakravarthy's ability to position Adobe in the context of increasingly powerful AI, the analysts say. Adobe is among a number of software stocks that sold off sharply this year over fears that AI competition will compress margins. Investors had been considering an outside appointment to provide a fresh approach, the analysts say. Shares fall 3% premarket following the appointment. (josephmichael.stonor@wsj.com)

0830 GMT - Sub-Saharan Africa offers a chance for long-term growth for producers of alcoholic drinks facing tougher trends elsewhere, research firm IWSR says. Sales of alcoholic beverages rose 1% last year in the region, in contrast to shrinking volumes in markets in the developed world such as the U.S., where consumption slid 5% last year and faces continued pressure ahead. All major booze categories are expected to contribute to 2% annual growth in sub-Saharan Africa to 2035, according to IWSR's estimates. Africa is often cited as alcohol's next frontier, and the demographics justify the attention, the IWSR's Russell Menezes says. He notes Africa's young, growing and rapidly urbanizing population. Still, challenges remain, from economic headwinds to religious bans on alcohol consumption in some areas, IWSR notes. (joshua.kirby@wsj.com; @joshualeokirby))

0813 GMT - Bank of Communications likely remains a solid dividend play, say DBS Group Research analysts in a note. They estimate the Chinese lender to offer a dividend yield of more than 5.0% for 2026-2027 at its current valuation, after Bank of Communications raised its dividend payout ratio to 31% from 30%, they say. While its shares have risen around 20% year-to-date, its price-to-book ratio valuation is on the lower end among peers, the analysts say. They expect about 4.4% earnings compound annual growth rate over 2025-2028. DBS raises its Hong Kong share target price to 8.50 Hong Kong dollars from HK$7.75 and maintains a buy rating. Shares rise 1.7% to HK$7.995.(megan.cheah@wsj.com)

0758 GMT - The budget for the Vicuna copper project BHP is developing with Lundin Mining is likely to rise above the current phase-one estimate of $7 billion-$8 billion, Barclays says following an analyst roundtable with BHP's CEO and CFO. "It was clear from the discussion that a higher number is likely," Barclays says. The budget for a new concentrator at BHP's Escondida mine is seen as "less at risk," the bank says. At its FY26 results, BHP increased its capex estimate for the concentrator project by 14%, to $5.4 billion-$6.3 billion, but the increase mainly reflects a larger project scope, says Barclays. "BHP feels relatively more comfortable about the capex risks" there, it says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0746 GMT - Investor concerns over Mitsui Fudosan's business being weighed by rising interest rates appear overstated, says Morningstar's Xavier Lee in a note. The market doesn't seem to appreciate the Japanese real-estate developer's strong balance sheet and ability to unlock value through monetizing its assets via funds and real-estate investment trusts, he says. Mitsui Fudosan's property portfolio, which includes Tokyo office, retail and mixed-use assets, is its greatest strength to Lee, but he flags that its premium assets might not always earn excess returns consistently through economic cycles. Mitsui Fudosan is the analyst's top sector pick. Morningstar initiates its coverage of the company at a fair-value estimate of 1,720 yen. Shares decline 0.3% to Y1,510. (megan.cheah@wsj.com)

0745 GMT - China equities could struggle to find a fresh catalyst in the near term unless policymakers deliver stronger support measures or AI-driven gains translate into broader earnings growth, according to a Morgan Stanley report. The bank cuts its June 2027 targets for major Chinese indexes, citing weakening economic data, tighter liquidity conditions and reduced room for additional investor inflows. It lowers its earnings growth forecasts for MSCI China to 6% in 2026 and 8% in 2027. Morgan Stanley says China's economic recovery has been delayed by soft domestic demand, a prolonged property downturn and limited policy stimulus. It adds that tighter oversight of cross-border capital flows and a more hawkish Federal Reserve outlook could further weigh on market sentiment.