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

0810 ET - Bud brewer AB InBev doesn't need to do much more than keep a steady ship, James Edwardes Jones at RBC Capital Markets says ahead of a capital markets day set for later this month. The beer giant has shown signs of a sustained rebound this year following a tough period of sliding demand. "Predictable continuity would do very nicely," Edwardes Jones says. Analysts and investors will be looking for the group to show it can ensure continued evolution of its portfolio, as well as grow its margins and allocate capital smartly, he says. RBC has an outperform rating and a 93-euro target on the Brussels-listed stock. "Our price target doesn't need anything heroic, just confidence that AB InBev can keep doing what it's doing," Edwardes Jones says. (joshua.kirby@wsj.com; @joshualeokirby)

0757 ET - European equity valuations are elevated on overly optimistic assumptions around the artificial intelligence-driven investment boom, Bank of America analysts write. Markets price record margin expansion and post-recession levels of earnings per share growth over the next three years, the analysts say. "We see ample scope for disappointment." Increased competition between model makers will reduce pricing power and lower margins--the same factor that has caused past tech booms to fall flat, they say. Moreover, the increased cost of money for hyperscalers, and the risk of insufficient electricity supply, will drag data center build-out on the continent. The analysts see potential for the Stoxx 600 to fall by 9% to around 580 into early 2027. The index rises 0.55% to 639.49 Friday.(josephmichael.stonor@wsj.com)

0750 ET - The trade-offs from Adobe's strategy of expanding the top of its funnel with freemium offerings were on full display in the company's F3Q print, Stifel says in a note. "While the company delivered solid MAU growth, the lack of ARR raise underscores the company's focus and strategy of optimizing its go-to-market approach for MAU growth, not nearterm monetization," the analysts say. "With an uncertain timeline for a shift in that focus or a meaningful pickup in freemium conversion, we see more muted upside potential for the business in the near-term." Investors will likely keep scrutinizing the move toward freemium offerings and the durability of Adobe's growth, the analysts add. Adobe down 4% premarket. (elias.schisgall@wsj.com)

0730 ET - Canadian grocer Empire is looking gain more of a foothold in the discount space. National Bank of Canada analyst Vishal Shreedhar says in a report that the Sobeys parent gained some market share in its conventional, full-service banner, and maintained position in discount. Canadian consumers have for a while now been seeking value, especially in their groceries, where inflation has driven up costs. Shreedhar notes that Empire now expects to open more than 25 new stores, up from more than 20, and that the company may even accelerate square footage growth beyond fiscal 2027 "as it aims to gain market share in discount (the fastest-growing grocery space), which we view positively." (adriano.marchese@wsj.com)

0701 ET - European equities are less vulnerable to spikes in natural-gas prices than in 2022, but higher energy costs can still hurt the continent's stocks, Citi analysts write. Gas storage volumes are higher than many assume, they say, even as benchmark natural-gas prices on the continent trade at their highest levels since the end of 2022. While higher gas prices would hurt European stocks, Citi commodity analysts see European prices falling by around 30% through the end of the year. "We therefore remain constructive on European equities through mid-2027, supported by solid earnings-per-share growth," they write. (josephmichael.stonor@wsj.com)

0636 ET - India's consumer inflation likely accelerated to 4.9% on year in August from 4.45% in July, according to the median estimate of five economists polled by The Wall Street Journal. That would mark the highest reading this year and since the government revamped its consumer-price index data series in January. Vegetable prices continued to rise alongside a sharp jump in sugar prices, while higher gold prices likely pressured the core inflation, HSBC economists say in a note. Volatile energy prices have also raised input cost pressures that could gradually pass through to consumers, even as retail fuel prices have been kept unchanged since May, says DBS Group Research. The data is expected to be released on Monday. (kimberley.kao@wsj.com)

0608 ET - Palm oil fell during the Asian trade, erasing earlier gains. Concerns over rising stockpiles and a weaker-than-expected export performance highlighted in the latest data from the Malaysian Palm Oil Board may have weighed on sentiment, Kenanga Futures writes in a note. The Bursa Malaysia Derivatives contract for November delivery fell 67 ringgit to 4,818 ringgit a ton. (kimberley.kao@wsj.com)

0531 ET - Adobe's fiscal third-quarter earnings were robust, but the software group's focus on attracting more customers weighs on its near-term outlook, JPMorgan analysts write. The company is happy to put monetization on the back burner in order to focus on expanding its pool of users with the aim that some will convert into paying customer, the analysts write. "Investors will look for proof points in relation to engagement turning into monetization," they say.There are signs that increased user engagement is translating into revenue, with annual recurring revenue in the group's Firefly app and credit pack growing by 40% on quarter, the analysts say. Adobe shares fall 3.1% premarket. (josephmichael.stonor@wsj.com)

0520 ET - Berkeley's continuing caution feels instructive, as the company has a strong reputation for being savvy in its calling of the ups and downs of the property market, AJ Bell analyst Russ Mould says in a note. The U.K. home builder can be relied on to deliver clear guidance and it is sticking with its long-term profit target and shareholder returns policy. A healthy cash pile provides a buffer to ride out the current difficult market conditions, Mould says. "Berkeley already announced plans to pare back production by 25% earlier this year and it still sees the market as quiet thanks to domestic uncertainty in the run-up to next month's Budget and the ongoing conflict in the Middle East," Mould says. Shares are down 0.2% at 3,286 pence. (anthony.orunagoriainoff@dowjones.com)

0514 ET - Oracle's strong fiscal first-quarter earnings print will answer investor concerns over its ability to convert contracted revenue into cash, J.P. Morgan analysts say. Concerns that Oracle would look to borrow more also weighed on investors' outlook, the analysts say. However, the earnings address those concerns, they say. Capacity delivery in the quarter shows a broadening data center build-out, while $30 billion of new AI contracts were largely prepaid, the analysts say. Discipline on spending and borrowing helped operating margin remain flat, they add. Oracle shares surge 7.1% premarket. (josephmichael.stonor@wsj.com)

0512 ET - Norsk Hydro's fourth-quarter Ebitda faces risks from disrupted natural-gas supply and cost uncertainty, J.P. Morgan analysts write. The Iran-U.S. conflict continues to impact the aluminum industry, after Norsk Hydro announced in August that disruptions to natural-gas supply at its Alunorte alumina refinery led to a temporary curtailment. That led management to implement contingency measures including purchasing natural-gas volumes at spot prices. While the impact on third-quarter earnings is material on its own, the bank remains concerned regarding the potential impact if Norsk Hydro needs to secure additional spot liquefied natural gas volumes into the fourth quarter. The bank downgrades Norsk Hydro stock to neutral from overweight and lowers its price target to 97 Norwegian kroner from 116 kroner. Shares fall 2% to 89.14 kroner. (dominic.chopping@wsj.com)

0500 ET - Questions linger over Richemont's long-term leadership, Alphavalue equity analyst Jie Zhang says after the Swiss luxury group appointed its powerful chairman's son to a senior role. Johann Rupert's son Anton was this week handed the role of nonexecutive co-deputy chairman of the group, which houses jewelers Cartier and Van Cleef & Arpels and watchmakers including Piaget alongside fashion brands like Chloe. Anton Rupert has limited experience in luxury and while he may be a natural choice for a leadership role in the family-dominated business, the quality of that leadership remains largely untested, Zhang notes. "Greater visibility around succession therefore does not necessarily translate into lower execution risk," she cautions. Alphavalue has a reduce rating and a target price of 179 Swiss francs on Richemont stock. Shares rise 0.55% to 173.85 francs.