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

2129 ET - Telstra's excellence in strategy execution is now expected and appears to be priced in, Macquarie analysts say. They maintain a neutral rating on the stock despite what they tell clients in a note is a strong fiscal 2026 performance on costs. This discipline underpinned earnings growth despite revenue falling over the 12 months through December, but the analysts point to weak growth in postpaid subscribers and a creep in capital expenditure as reasons for caution. Top-line growth looks increasingly hard for Telstra given the broader market conditions, they say. Macquarie cuts its target price on the stock by 3.4% to 5.02 Australian dollars. Shares are down 0.6% at A$4.81. (stuart.condie@wsj.com)

2117 ET - Telstra's annual result and fiscal 2027 guidance don't appear to have won over any marginal buyers of the Australian telco's shares, Morgans analyst Nick Harris observes. The stock fell 3.2% in the session following the announcement despite a 3.5% lift in annual underlying earnings that Harris points out was in line with expectations. He tells clients in a note that Telstra's ability to push average revenue per mobile user higher at an annual rate of between 3% and 5% in the past three halves shows pricing power, but thinks that softer recent momentum in postpaid subscribers seems to have spooked some investors. Morgans keeps a hold rating on the stock and cuts its target price by 3.8% to 5.00 Australian dollars. Shares are down 0.6% at A$4.81. (stuart.condie@wsj.com)

2105 ET - Insurance Australia Group's bear at Macquarie says stronger-than-expected guidance for gross written premium growth offsets disappointment over its reported margin outlook. Keeping an underperform rating on the stock, one of the investment bank's analysts tells clients in a note that they think IAG's fiscal 2027 guidance for GWP growth of 5%-8% is very strong. They are disappointed by a reported margin guidance range of 14.5%-16.5%, but point out that this assumes catastrophe costs are in line with allowance. Any beat in catastrophes would imply upside relative to guidance, they add. Macquarie trims its target price on the stock 2.7% to 7.10 Australian dollars. Shares are up 1.9% at A$7.955. (stuart.condie@wsj.com)

2028 ET - ASX loses its bulls at UBS following the stock's recent rerate. The investment bank's analysts lower their recommendation to neutral from buy, telling clients in a note that they see only moderate value with shares of the Australian market operator trading at 23 times earnings. With interim CEO Darren Yip handing charge to permanent successor Anthony Attia on Sept. 1, they think there are residual risks around costs and capital expenditure. UBS raises its target price on the stock by 7.9% to 66.90 Australian dollars. Shares are down 4.8% at A$57.60. (stuart.condie@wsj.com)

2021 ET - Seek's ability to drive continued operating leverage keep its bull at Morgans onside despite macroeconomic conditions weighing on the outlook for ad volumes. Analyst Steven Sassine tells clients in a note that the Australian job advertiser has levers including pricing, internal tech-related efficiencies and discretionary cost control that it can pull to maintain profitable medium-term growth. Sassine cuts his FY 2027 EPS forecast by 16% on increased depreciation and amortization, higher net interest costs, and a 2% cut to his revenue expectations. Nonetheless, he keeps a buy rating on the stock. Its target price falls 16% to A$19.90. Shares are up 5.3% at A$14.65. (stuart.condie@wsj.com)

2013 ET - Macquarie analysts think that investors can afford to be patient for signs that Treasury Wine Estates' recovery is more fundamental. The investment bank's analysts keep a neutral rating on the stock, telling clients in a note that signs on the Australian vintner's turnaround are positive but early. They point out that Treasury Wine needs to maintain strong levels of depletions even when wholesale distributor inventories have been cleared of excess stock. In summary, they say key major initiatives to support a sustainable turnaround still need to be executed over the next two years or so. Macquarie lifts its target price on the stock 12% to 5.50 Australian dollars. Shares are up 2.4% at A$5.91. (stuart.condie@wsj.com)

2012 ET - Japanese stocks are higher in early trade as fears about the Fed's potential rate increases ease. Electronics and tech stocks are leading the gains. Panasonic Holdings is up 4.5% and SoftBank Group is 5.3% higher. The dollar is at 159.46 yen, compared with Y159.39 as of Thursday's Tokyo stock market close. Investors are closely watching any developments in the Iran conflict and crude oil prices. The Nikkei Stock Average is up 1.8% at 69523.56. (kosaku.narioka@wsj.com; @kosakunarioka)

1957 ET - Treasury Wine Estates's turnaround gets a vote of confidence at Morgans. Analyst Belinda Moore reiterates a buy rating on the stock, telling clients in a note that she thinks the Australian vintner's FY 2027 guidance will turn out to be conservative. She still sees the period as a transitional year while Treasury Wine rebalances inventories, but points out that this is progressing ahead of expectations and that depletions growth is strong across key brands. Moore anticipates a return to solid earnings growth in FY 2028, with a strengthened balance sheet supporting the resumption of dividends. Morgans lifts its target price on the stock 23% to 7.30 Australian dollars. Shares are at A$5.77 ahead of the open.(stuart.condie@wsj.com)

1947 ET - Execution risks related to Treasury Wine Estates' turnaround plan keeps UBS analyst Shaun Cousins neutral on the stock despite positive early signs. Cousins is positive on the Australian vintner's progress in clearing excess Penfolds inventory from distributor channels, and likes the brand's growth potential in China from its positioning as a luxury offering. He also sees signs of stabilization in the U.S. wine market and movement on clearing excess inventory there. However, he tells clients in a note that risks remain as Treasury Wine rebalances output with demand. UBS lifts its target price on the stock 4.0% to 6.50 Australian dollars. Shares are at A$5.77 ahead of the open. (stuart.condie@wsj.com)

1946 ET - Japanese stocks may rise as concerns about the Fed's potential rate increases have eased following U.S. wholesale price data on Thursday. Nikkei futures are up 1.4% at 69310 on the SGX. The dollar is at 159.47 yen, compared with Y159.39 as of Thursday's Tokyo stock market close. Investors are focusing on any developments in the Iran conflict and crude oil prices. The Nikkei Stock Average rose 1.2% to 68308.59 on Thursday. (kosaku.narioka@wsj.com)

1928 ET [Dow Jones]--Swedish private-equity firm EQT's bid for Cleanaway Waste Management looks opportunistic to Jefferies. Cleanaway has disappointed market expectations over the past five years despite owning assets that are difficult for rivals to replicate. "EQT's approach is therefore understandable, given the option to make changes to the business and deliver stronger cash flow growth in the medium term," says analyst Amit Kanwatia. EQT is offering A$3.13/share. That values Cleanaway's equity at A$7.0 billion. Cleanaway missed market expectations with Ebit guidance of A$500 million-A$530 million in FY27. "Therefore this bid does insulate shareholders from another disappointing result, while supporting the board's intention to recommend," Jefferies adds. (david.winning@wsj.com; @dwinningWSJ)

Origin Energy's flat annual dividend surprised its bull at UBS. That's partly because Origin's leverage is well below the bottom end of a 2-3x target range and FY27 capex guidance is lower than expected. "Given these outcomes and a conservative approach to dividends, we think it introduces the potential for Origin to pursue scale growth over FY27," analyst Tom Allen says. Potential deals include small energy and broadband retailers, which will help reduce customer churn and boost value, UBS says. Origin could also offer full scale energy and infrastructure solutions to data centers and hyperscalers. It could plow more investment into Octopus Energy and Kraken. Origin ended Thursday at A$11.86.