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

0817 GMT - Novartis's latest clinical-trial failure suggests the company might need more dealmaking to deliver on its ambition for steady growth beyond 2030, Jefferies analysts say in a research note. The Swiss drugmaker maintained its 2025-30 sales guidance as it said its neuromuscular drug del-desiran missed the main goal in a late-stage study. However, no comment was provided on the ambition to grow by mid-single percentage digits beyond 2030, the analysts say. Even with the recent success of a new multiple-sclerosis pill, it will be challenging to get confidence on the company's growth for the 2030s without del-desiran and del-brax, two drugs Novartis acquired from Avidity Biosciences, Jefferies says. As a result, dealmaking will likely remain part of Novartis's story, the analysts add. Shares fall 10%. (adria.calatayud@wsj.com)

0807 GMT - European energy stocks trade higher Tuesday morning as oil continues to gain on fears of prolonged supply disruptions in the Middle East. Brent, the global oil benchmark, rises 1.8% to $98.74 a barrel, while WTI futures are up 3.1% to $94.32 a barrel. This pushes Britain's BP up 1.4% and Shell 0.9% higher. Norway's Equinor gains 1.3% and Italy's Eni rises 1.1%. Spain's Repsol climbs 1%.(adam.whittaker@wsj.com)

0750 GMT - Com7's 3Q outlook appears upbeat thanks to double-digit same-store sales growth recorded in July and August, says Maybank Securities (Thailand)'s Wasu Mattanapotchanart in a note. The Thai IT product retailer's sales have benefited from higher average-selling prices across product categories, the analyst says, noting that smartphones such as the iPhone 17 have contributed to rising ASPs. The analyst expects 3Q core profit to rise 46% on year on wider gross margins and stronger revenue contribution from laptops and Com7's flexible financing service Ufund. iPhone maker Apple's upcoming launch with new models could offer scope for higher product ASPs, the analyst adds. Maybank Securities reiterates its buy rating and 35.00 baht target price. Shares decline 1.7% to 29.50 baht. (megan.cheah@wsj.com)

0748 GMT - Mobico's second-quarter performance update shows a continuation of the key trends seen in its 15-month results. with revenue growth accelerating to 5% and reiterated adjusted operating guidance of 215 million to 230 million pounds, Berenberg analysts Jack Cummings and Luka Trnovsek say. Strength at its ALSA division more than offset a deceleration in the U.K. Coach business, which continues to see revenue declines. Closing the UK Bus sale by November should derisk the business and provide a clear structural catalyst, Berenberg says. "This was an encouraging 2Q update, although we remain at Hold with a 35 pence price target as we await evidence of a sustained turnaround in the UK Coach business and a clear path to deleveraging," the analysts say. Shares are up 1.9% at 23.82 pence. (anthony.orunagoriainoff@dowjones.com)

0744 GMT - The founder of Japan's Terra Drone says that defense contractors' reliance on Taiwanese components leaves drone supply chains exposed to geopolitical conflict. While Taiwanese parts offer a cost-effective alternative to expensive Western components, Toru Tokushige noted that a potential naval blockade of Taiwan would instantly halt critical supplies. "If Taiwan gets encircled by fleets, no supplies will be able to get through," he said in a recent interview with The Wall Street Journal. Terra Drone's government contract win contributed to a surge in its share price, which last closed 0.9% higher at 20,280 yen. (megumi.fujikawa@wsj.com)

0739 GMT - HD Korea Shipbuilding & Offshore Engineering is set to benefit from strong growth at its subsidiaries, says Lee Jae-hyuk at LS Securities. The analyst expects the share of higher-end LNG and LPG carriers in the total shipbuilding lineup to expand through 2029 at the South Korean holding company's unlisted local subsidiary HD Hyundai Samho, which posted an industry-leading operating profit margin of 22.5% in 2Q. Lee is also positive about brisk contract wins by the holding company's affiliated overseas shipyards in the Philippines and Vietnam to build tankers. LS maintains a buy rating and 440,000-won target price on the stock. Shares closed 1.4% lower at 346,500 won. (kwanwoo.jun@wsj.com)

0737 GMT - It may take time for AI monetization to translate into higher valuations for Chinese tech companies, Daiwa analysts say in a research note. Chinese foundation models are gaining credibility, but economics remain under assessment. Investors are aware of the competitiveness of Chinese models, but continued evidence on sustainable pricing power and margin improvement will likely be required, they say. "We are likely more positive than the market on the path of AI monetization, particularly through cloud revenue growth, gaming productivity gains and foundation-model adoption," Daiwa says. (tracy.qu@wsj.com)

0737 GMT - Mobico's second-quarter revenue growth isn't expected to be a major share driver given that operating profit guidance remains unchanged, RBC Capital Markets analysts Ruairi Cullinane and Jakub Glinkowski say in a note. The London-listed transport operator's overall top-line trends are strong and driven by growth at ALSA and German Rail. Still, it continues to face challenges in the U.K., where passenger numbers are down in both Bus and Coach, the analysts say. "We see elevated upside potential in some scenarios, although we think other stocks in the sector offer more attractive risk-reward and trade on larger discounts to long-term average enterprise value valuation multiples," RBC says. Shares are up 2.7% at 24.02 pence. (anthony.orunagoriainoff@dowjones.com)

0732 GMT - Goldman nudges oil-price forecasts higher on the assumption that Mideast shipping disruptions will continue into 2027. But the revision is modest as OECD commercial oil inventories--a key predictor of crude prices--have barely drawn down since the war began and Mideast supply adaptation will likely continue. GS estimates that the global oil market deficit has narrowed from about 7 million barrels a day in March to 1 million in 3Q as Gulf output partially recovered. It assumes new pipeline capacity will come online in late 2027, and that the UAE and Saudi Arabia will eventually deploy spare capacity. Gulf liquids output has already improved and could return to pre-war levels by 2H 2027. (fabiana.negrinochoa@wsj.com)

0724 GMT - European stock indexes mostly edge lower in early trade, with higher oil prices weighing on sentiment. The Europe-wide Stoxx 600 is 0.3% lower, dragged by inflation-vulnerable stocks. London's FTSE 100 is about flat, with rising oil majors cushioning other losses. In Paris, the CAC 40 falls 0.25% as Societe Generale slides 2.2%, while luxuries continue to weaken. The German DAX loses 0.2% as chip maker Infineon drops 2.45% after a broker downgrade. Italy's FTSE MIB falls 0.2%, while the Spanish IBEX 35 slips 0.3%. The Dutch AEX is 0.1% higher despite ASML weakness, as beer maker Heineken rises 1.2%. Elsewhere, Novartis shares slide close to 10% after the Swiss drug maker recorded its third trial disappointment in the space of a week.(josephmichael.stonor@wsj.com)

0722 GMT - BP stock could become 30% more valuable relative to its performance if its current oil and gas exploration efforts are successful, Citi analysts write. The giant Brazilian offshore discovery Bumerangue is its hottest prospect, and combined with efforts in the U.S., Venezuela and Iraq, the British energy company's oil supply lifespan could grow to 14 years from the seven years reported at the end of 2025, they write. BP's reserve life outside its U.S. BPX business has fallen behind peers after it invested heavily in a pivot toward renewable forms of energy that dented its valuation, they say. BP's shares rise 0.8% to 550 pence. (adam.whittaker@wsj.com)

0715 GMT - Nabtesco's marine vessel equipment business is likely to deliver higher sales, based on its recent investor relations day, Nomura's Kentaro Maekawa says in a research report. It's now guiding for 2026 sales at this business, which forms part of the transport solutions segment, of 31.2 billion yen versus prior guidance of Y28.1 billion, the analyst notes. This reflects strong recovery and growth in the shipbuilding market, increased usage per ship of the Japanese company's electronic control valves, and rising prices for remote control systems. The brokerage raises the stock's target price to Y5,300 from Y4,600 with unchanged neutral rating. Shares closed 6.1% lower at Y4,337.