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

0659 GMT - Tesco's profit growth is increasingly being supported by strong sales mix, analysts at Deutsche Bank say in a note. The chain is a best-in-class operator in the U.K. grocery segment, and it has shown resilient earnings, the analysts say. Even despite a weak consumer sentiment in the U.K., it has strong scale advantages, balance sheet and value credentials, which position it for outperformance, the analysts say. (aimee.look@wsj.com)

0650 GMT - SSP Group's latest update shows a tough U.S. market is weighing on profitability, but the U.K. company's renewal of its buyback looks reassuring, RBC Capital Markets' Manjari Dhar and Richard Chamberlain say in a research note. The operator of food outlets at travel hubs signaled fiscal 2026 revenue would be broadly as expected, underlying operating profit weaker than forecast and EPS a touch ahead, according to RBC. SSP also renewed its 50 million-pound buyback for fiscal 2027, which should reassure investors, the analysts say. "We think that SSP has been executing better in recent periods, but we are conscious that passenger volumes have been softening in the important U.S. region and we think that higher jet fuel prices may weigh on travel demand near-term," they add. (adria.calatayud@wsj.com)

0629 GMT - Semiconductor companies are set to voice confidence during the upcoming earnings season despite concerns over the sustainability of AI infrastructure spending, Bernstein analysts say in a research note. AI investments are now so massive and are approaching major and hard limits that can't be simply explained by supply and demand, they say. Rising borrowing costs, increasing safety and environmental concerns as well as regulatory guardrails could trigger a deceleration in semiconductor demand. However, signals from the upstream semiconductor supply chain continue to point to unabated AI demand and continued shortage, they say. Bernstein still holds a positive view on the upcoming earnings results and outlooks offered as some of the concerns above have been priced in the recent correction. (sherry.qin@wsj.com)

0629 GMT - Tata Consultancy Services' second-quarter results offer little evidence to support an upturn in demand outlook, say Jefferies' analysts in a note. A pickup in growth in the U.K. was a positive surprise, but weak growth across other key regions, a 4% on-year drop in deal bookings, and rising margin pressures should keep the company's earnings growth in check, the U.S. bank says. While a 6% dividend yield may limit downsides, the stock is likely to underperform amid an uncertain growth outlook, it says. Jefferies maintains an underperform rating and a target price of 1,800 rupees. Shares are 4.2% higher at 2,163.15 rupees. (kosaku.narioka@wsj.com; @kosakunarioka)

0603 GMT - Tata Consultancy Services' 2Q results suggest continued slow growth trends for the Indian information technology services sector, Citi Research's Surendra Goyal says in a note. Tata Consultancy's total contract value and headcount trends don't improve visibility, Citi says. Meanwhile, margin headwinds are evident, with margin declining from a year earlier despite a weaker rupee, the analyst says. The bank stays cautious on the sector given slow growth, elevated competition and artificial intelligence's impact on business. Citi cuts its target price to 1,840 rupees from 1,875 rupees and maintains a sell rating. Shares are 5.2% higher at 2,184 rupees. (kosaku.narioka@wsj.com; @kosakunarioka)

0530 GMT - Terumo's exit from its plasma collection business is likely to drag sales in the near term but strengthen its longer-term earnings, Jefferies analysts say in a note. As a result of the exit, the Japanese medical equipment maker is taking a $610 million charge and cutting fiscal-year earnings guidance. The U.S. bank cuts its Terumo revenue forecast for the fiscal year starting in April 2027 but raises operating profit estimates for the period onward. The bank says Terumo management expects profitability for blood and cell technologies to improve, as resources are redirected toward higher-growth, higher-margin apheresis and blood processing franchises. Jefferies cuts its target price to 2,700 yen from Y3,300 and keeps its buy rating. Shares are 2.0% lower at Y2,261.5.