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

0637 GMT - SK Innovation is likely to benefit from higher lubricant base oil prices, LS Securities analyst K.H. Chung says. The South Korean refiner is a global leader in premium lubricant base oils, producing about 80,000 barrels of Group III base oils a day, Chung writes in a note. She expects the supply shortage of lubricant base oils to persist for more than a year. Tight supply of kerosene and diesel and wider refining margins could also continue to boost the company's earnings, she adds. LS Securities upgrades the stock to buy from hold and raises its target price to 187,000 won from 126,000 won. Shares end 2.6% higher at 158,000 won. (kwanwoo.jun@wsj.com)

0629 GMT - News that Vaxcyte's experimental pneumonia vaccine held up against two approved shots in a late-stage clinical trial should open a new revenue stream for Switzerland's Lonza Group starting in a couple of years, RBC Capital Markets' Charles Weston says in a research note. "Lonza is fully embedded in Vaxcyte's manufacturing supply chain through multiple overlapping agreements," the analyst says. Vaxcyte's vaccine is projected to reach $4 billion in annual peak sales, though it is unlikely to launch before 2028, RBC says. At its peak, this could translate into $400 million to $550 million in revenue for Lonza, the analyst estimates. (adria.calatayud@wsj.com)

0611 GMT - Valuations at India's fast-moving consumer goods sector continue to derate amid weak earnings visibility, says HDFC Securities. "With sustained cost headwinds, we may see growth moderation ahead, which alongside margin strain could stress FY27 earnings," it says in a note. While fiscal 2Q revenue growth could improve versus recent quarters on a softer base and selective price increases, persistent raw material inflation is set to weigh on margins. HDFC remains positive on India's long-term consumption opportunity, but reckons that a focus on premium products alone is no longer sufficient to drive broad-based growth. Any demand moderation combined with sustained inflation could further pressure earnings delivery. Against this backdrop, HDFC remains selective and favors stronger execution-led companies such as Nestlé India, Godrej Consumer, Britannia, Honasa Consumer, Emami and Bikaji.