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

0922 GMT - Alibaba stands to benefit further from its AI business development, Citi analysts say in a research note. Chief Executive Eddie Wu's messages of a 20-gigawatt AI infrastructure target by fiscal 2033 could translate to $160 billion in external cloud revenue by then, the bank says. That compares with Citi's current forecast of $100 billion in fiscal 2031. The bank also expects Alibaba to continue its high capital expenditure in the coming years. Citi keeps a buy rating on the stock with a target price of HK$189.00. Shares close 1.95% higher at HK$114.80. (tracy.qu@wsj.com)

0909 GMT - Novo Nordisk's 8% share price fall following the investor day is an overreaction, but proves that investors remain nervous about 2027, with expected price pressure and CagriSema drug launch skepticism, Berenberg analysts write. The Novo story appears more interesting from 2028, with zenagamtide phase 3 data, CagriSema bone and muscle function data and multiple phase 1 and 2 readouts, the bank says. The event provided a comprehensive overview of the company's strategy, R&D pipeline and business operations, but offered only incremental strategic insights, it adds. The 2030 and 2035 sales ambitions were also outlined, which are broadly in line with expectations. Understanding the need to quickly diversify the portfolio ahead of U.S./EU semaglutide patent expiry early next decade, Novo aims to significantly speed up development and supplement the internal pipeline. Shares fall 0.7%. (dominic.chopping@wsj.com)

0902 GMT - The popularity of Meta's new consumer-facing AI agent, Muse, is a sign that demand will grow for products across the AI supply chain, UBS strategists write. The successful launch shows that there are ways for AI companies to make money beyond selling the technology to large companies, they say. The AI product space is increasingly competitive, underpinning demand for computing power and AI infrastructure, the strategists add. "This should benefit high-quality semiconductor and hardware leaders." Meta stock edges up 0.4% premarket after an 11% surge in the last session. Chip makers Intel and Advanced Micro Devices fall 0.7% and 1%, respectively, premarket after double-digit gains Monday.(josephmichael.stonor@wsj.com)

0837 GMT - Volvo Car's third quarter will be hit by several headwinds, including cost inflation, currency and rising depreciation and amortization, Deutsche Bank analyst Nikita Papaccio writes. Overall, the global premium market is now expected to decline more than initially anticipated, with a particularly weak outlook for China, partly offset by improving conditions in Europe, the bank adds. The company is seeing solid order intake for the new EX60, but the production ramp-up remains in progress, so the bank expects the first meaningful financial contribution to become visible in the fourth quarter. "Regarding FY guidance, although the company already adjusted its forecasts alongside Q2 results, we expect a further softening in light of recent developments." The bank maintains its hold rating on the stock with a 21 Swedish kronor target price. Shares fall 1.3% to 16.66 kronor. (dominic.chopping@wsj.com)

0807 GMT - L'Oreal's third-quarter results in Europe will likely be more resilient than initially feared, Jefferies analyst David Hayes says. Still, its North America business remains the standout due to its momentum in mass, professional and fragrance areas, Hayes says. Further, stronger trends for higher-end consumer staples point to a stabilizing market in China, he says. Shares are up 1% at 387.65 euros. (aimee.look@wsj.com)

0759 GMT - The Hungarian forint should benefit if Hungary's central bank pauses interest rate cuts and lowers its inflation target in a decision at 1200 GMT, ING's Frantisek Taborsky says in a note. The central bank is expected to keep its policy rate at 5.50% and could reduce its inflation target to 2.0% from 3.0%, he says. This would signal tighter policy for longer and enhance the forint's appeal in carry trades where investors borrow in low yielding currencies to invest in higher yielding currencies, he says. "Still, the domestic story is having limited market impact, and a sustained rally in FX and fixed income is unlikely without some progress in the geopolitical situation." The euro rises 0.6% to 362.11 forints. (renae.dyer@wsj.com)

0756 GMT - Prudential PLC's robust Hong Kong momentum is set to continue, says DBS Group Research's Ken Shih in a note. This momentum is supported by increasing contribution from mainland Chinese employees in Hong Kong, the analyst says. The insurer also indicated that business activities in the mainland Chinese visitors segment remained steady from 1H, despite news regarding taxation on offshore insurance returns, the analyst notes. Meanwhile, the Chinese bancassurance segment is likely to see near-term adjustments on tighter expense rules, but its upbeat outlook remains, given a bancassurance partner's expansion into the high-net-worth wealth segment. DBS maintains its buy rating and 138.00 Hong Kong dollar target price on Prudential's Hong Kong-listed shares, which fall 1.0% to HK$101.60. (megan.cheah@wsj.com)

0748 GMT - The South African rand could suffer if the country's central bank raises interest rates on Wednesday but fails to signal further hikes, Commerzbank's Volkmar Baur says in a note. A 25bps rate rise is fully priced in, he says. The South African Reserve Bank held rates steady contrary to expectations in July when the Middle East conflict had just flared up again. The hope was that tensions would ease and oil prices fall back but that hasn't been the case in recent months, he says. "We would say that the SARB would likely be well advised not only to raise interest rates on Wednesday but also to adopt a hawkish tone." The dollar rises 0.3% to 16.2912 rand. (renae.dyer@wsj.com)

0743 GMT - EssilorLuxottica is expected to benefit from more durable smartglasses demand, analyst at RBC Capital Markets Piral Dadhania says in a research note. The Franco-Italian eyewear group has been under pressure from worries of new competition coming into the segment. EssilorLuxottica develops smartglasses in partnership with Meta. The stepdown in growth from last year's fourth-quarter peak reflects the natural evolution of the category, the analyst says. This goes from rollout of the product and early-adoption demand to a more durable long-term growth rate, he adds. While smartglasses remain a positive contributor to group growth, competition in this category should continue to (rise, Dadhania says. Shares fall 0.4%. (andrea.figueras@wsj.com)

0745 GMT - Samsung Electronics' rapid expansion of high-bandwidth memory production could squeeze supplies of other general-purpose memory chips, KB Securities analysts say. The world's largest memory-chip maker is expected to allocate 33% of its total DRAM production capacity to higher-end HBM products for artificial-intelligence applications in 2026 and 40% in 2027, up from 27% in 2025, analysts led by Jeff Kim write in a note. By contrast, Samsung's general-purpose memory chips are likely to account for 65% of its total DRAM production capacity in 2026 and 59% in 2027, down from 73% in 2025, they note. Samsung's HBM4 products could account for about 80% of its total revenue next year, up from 40% this year, they add. (kwanwoo.jun@wsj.com)

0743 GMT - European energy stocks post slight gains in early morning trade as oil prices halt their decline. Risks to shipping through the Strait of Hormuz remain elevated. A tanker entering the strait was struck by a projectile on Monday, according to U.K. Maritime Trade Operations. However, there remains some optimism that diplomatic efforts at the United Nations this week will help end the U.S. conflict with Iran. Brent crude futures are 1.3% higher at $101.64 a barrel, while West Texas Intermediate gains 1.3% to $97.00 a barrel. In London, Shell rises 0.8% while BP gains 0.5%. France's TotalEnergies and Norway's Equinor are around 1% higher, and Italy's Eni is up 0.8%. Spain's Repsol rises 0.6%.(adam.whittaker@wsj.com)

0740 GMT - Novo Nordisk's investor day underwhelmed on multiple fronts, relative to some of the more optimistic expectations heading into the event, Deutsche Bank analyst Emmanuel Papadakis writes. "Whilst the event provided both a helpful and thorough review of the business outlook as well as a strategic refresh, it was met with a fairly punishing market response." The bank says there was largely a reiteration of familiar strategic messaging and the mid-term building blocks, in addition to somewhat underwhelming mid-term guidance. There was also nothing of substance in terms of clinical data or assets, and little clarity on M&A even though it clearly remains on the agenda, Deutsche Bank adds. The bank lowers its stock target price to 245 Danish kroner from 265 kroner and retains its sell rating. Shares fall 0.6% to 258.50 kroner.