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

2007 ET - Telstra gains a bull in Citi, which thinks its Ebitda--or earnings before interest, taxes, depreciation and amortization--could top market expectations because of stronger cost control. Citi also views Australia's largest telco as being well placed to deliver 5% year-over-year growth in mobile services in FY27, "with potential upside from stronger ARPU [average revenue per user] growth." While an inquiry into regional mobile coverage across Australia and a potential medium-term headwind to ARPU from proposed legislative changes are risks to consider, "we see Telstra as defensive in a soft macro environment," Citi says. It upgrades the stock to buy from neutral. It keeps a target price of 5.25 Australian dollars a share. The stock is up 0.2% at A$4.73. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1959 ET - As China accelerates its semiconductor self-reliance, automakers with greater control over their chip supply could gain an edge in intelligent vehicles and emerging physical AI markets, according to a report by research firm Digitimes. Chinese automaker BYD's decades-long investment in chip design and manufacturing illustrates how control of key semiconductor technologies can boost competitiveness as export controls spur adoption of domestic alternatives, it says. Digitimes expects China's localization drive to expand from traditional automotive chips to smart-driving processors, while the convergence of the EV and robotics industries gathers pace. Expertise in AI chips, sensors, motors and control systems could create new opportunities as humanoid robots and other physical AI applications move toward broader adoption, it says. (jie.yang@wsj.com)

1959 ET - Insilico offers one of the clearest tests of whether AI can expand pharma innovation beyond faster molecule design, Citi analysts. They start coverage with a buy/high-risk rating. Insilico has sustained preclinical candidate generation since 2021 across multiple therapeutic areas, supporting the repeatability of its AI-discovery process. The 15 partnerships with global firms it has disclosed have an aggregate headline contract value exceeding $11 billion and suggest it can convert hypotheses into development assets and commercial transactions at scale. Of the various clinical assets on track to validate Insilico's AI-driven drug design, Citi sees rentosertib--the first AIDD candidate in Phase III--as the biggest valuation catalyst. It sets a HK$85 target on the stock, which closed at HK$44.96. (fabiana.negrinochoa@wsj.com)

1947 ET - Japanese stocks may remain rangebound as uncertainty over the Middle East and energy costs continues. Nikkei futures are up 0.1% at 64520 on the SGX. The dollar is at 158.84 yen, down from Y159.63 as of Wednesday's Tokyo stock market close, after weaker-than-expected U.S. private-sector jobs data. Investors are focusing on bond yields and crude oil prices as well as developments in the Iran conflict. The Nikkei Stock Average fell 2.9% to 64325.64 on Wednesday. (kosaku.narioka@wsj.com)

1929 ET [Dow Jones]--The addition of a black box warning to the label of CSL's Injectafer is unlikely to have a big impact, according to Citi. The Food and Drug Administration approved revised labeling for the iron replacement medicine to warn of the risk of low levels of phosphate in the blood. "We do not think it will change much," says Citi. "Generics to Injectafer have become available over the last few weeks and, per FDA, are expected to update their labels also." Citi has a neutral rating and A$160/share target on CSL. The stock ended Wednesday at A$173.85. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1952 ET [Dow Jones]--James Hardie Industries's share price has risen more than 50% from its May low, and its bull at Morgan Stanley thinks the rally has further to run. Analyst Joseph Michael said James Hardie's 1Q result increased confidence in its ability to deliver above-market growth despite a weak U.S. housing backdrop. Also early integration savings following its acquisition of AZEK and stronger cash generation are reducing risk around its balance sheet, MS says. "The stock has re-rated, but we still see upside as James Hardie executes on self-help initiatives, with additional optionality from a U.S. housing recovery," MS says. It rates James Hardie at overweight, with a A$48.00/share price target. James Hardie ended Wednesday at A$39.92. (david.winning@wsj.com; @dwinningWSJ)

1850 ET - Australian stocks are poised to follow U.S. equities higher, after a rally in Treasury yields stalled. ASX futures are up by 0.4% ahead of Thursday's open, suggesting that the S&P/ASX 200 could snap its three-day losing streak. The benchmark index has lost 1.3% so far this week amid a global bond-market rout that's driving up borrowing costs. Shares including in BHP, Woodside, Coles and Ramsay Health Care will trade ex-dividend. In the U.S., the DJIA rose 0.6% while the S&P 500 and the tech-heavy Nasdaq Composite both added 0.5%. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1843 ET [Dow Jones]--Jefferies's takeaway from Sonic Healthcare's annual result last month: FY27 hinges on three regions. Analyst David Stanton says the U.S. remains the key drag. Sonic has begun an operating review of its U.S. operations targeting organic growth and margin recovery off a low base. In the U.K., integration delays to a big new contract and labor costs are weighing on performance. Sonic's focus in the U.K. is shifting to organic growth and efficiencies, Jefferies says. "And Australian Radiology's margin dilution from greenfield investment should ease on cost discipline and productivity gains," it adds. Jefferies retains a hold call and A$21.00/share price target on Sonic, which ended Wednesday at A$18.73. (david.winning@wsj.com; @dwinningWSJ)

1838 ET - Nine Entertainment has overhauled its operations in such a way that profits have become more resilient to macroeconomic headwinds, suggests Jefferies. Analyst Roger Samuel says Nine's earnings are now more skewed toward its growth assets. More than 60% of Nine's Ebitda is derived from QMS and Stan. "The growth in both businesses is more than offsetting the structural headwinds in TV and Publishing," Jefferies says. Nine is trading a price-to-earnings multiple of 10x, with a dividend yield of more than 7%, says Jefferies. It rates Nine a "buy" with A$1.40/share price target. Nine ended Wednesday at A$0.96. (david.winning@wsj.com; @dwinningWSJ)

1836 ET - SkyCity Entertainment is right to put its casino precinct in Adelaide under review, signals Forsyth Barr. "We think the divestment of Adelaide would be taken well by the market considering we calculate it has delivered A$420 million of cumulative net cash losses for SkyCity through its 25 years of ownership," analyst Paul Laxton Koraua says. An analysis of recent M&A transactions in the industry suggests there's demand for regional Australasian casino assets. Forsyth Barr says Iris Capital has been the most active in recent years. Iris Capital bought Cairns Casino for A$193 million, while purchasing Christchurch Casino from Skyline for NZ$102 million. (david.winning@wsj.com; @dwinningWSJ)

1751 ET - Broadcom's newest tensor processing unit, or TPU, is "comparable, if not surpasses, the Vera Rubin GPU," Chief Executive Hock Tan tells analysts on a call, referring to the long-awaited next-generation Nvidia chip. Production shipments of the Broadcom's newest TPUs for Google have begun, Tan says. Broadcom also shipped Jalapeño chips developed in partnership with OpenAI, which Tan says outperform Nvidia's Grace Blackwell GPUs for inference workloads. The comments come as investors debate whether Nvidia will lose market share to custom chip makers such as Broadcom and Marvell. (elias.schisgall@wsj.com)

1635 ET - The publicly traded Securitize is set up for a big win with the SEC's proposal this week to overhaul transfer agent rules, StoneX analyst Mark Palmer says in a note. The proposal, which would be the first substantive rewrite of the rule since the early 1980s, embraces blockchain technology and calls for reporting that would distinguish issuer-sponsored tokenized issues from those sponsored by third parties, the analyst says. It also considers tying wallet addresses to a master securityholder file, he says. Securitize is a registered transfer agent that has spent years building that kind of infrastructure while other firms followed rules for paper certificates, the analyst says. The SEC's proposed rule would strengthen the company's strategic moat, Palmer says. Shares closed up 4.2% at $6.51.