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

1244 ET - Investors are overly fixated on Netflix's slowing viewing trends in the U.S. and missing other positives for the company, Deutsche Bank analysts write in a note, updating the stock to buy. They note that the biggest domestic declines this year coincided with the Winter Olympics and World Cup, while international viewing data suggest consistent growth with a substantial runway. The company also has room to leverage its position as a platform -- optionality the analysts see as not priced in - and should, on net, benefit from AI adoption. Though the U.S. softness is real, the analysts write, "we believe the current valuation largely reflects these domestic risks while insufficiently differentiating Netflix's mature US business from its less- developed, higher growth international opportunity." Shares gain 2%. (elias.schisgall@wsj.com)

1237 ET - Xanadu Quantum Technologies offers a high-upside, pure-play investment in photonic quantum computing, says RBC's Paul Treiber, who initiates coverage with a speculative risk rating and a $16 price target. The analyst says that near-term stock upside will be driven by technical milestones, government funding, and strategic partnerships rather than immediate sales until its quantum data center goes online in 2029/2030. The risk exists because "Xanadu and most quantum computing peers have nominal near-term revenue, which makes benchmarking valuation difficult." However, Treiber says that Xanadu offers a "unique exposure to photonics-based quantum computing" as the company and sector ramp up to "quantum monetization" in 2030. Shares are up 2% to C$4.87 but down 55% year-to-date. (adriano.marchese@wsj.com)

1223 ET - AutoCanada making moves to reorganize its business, most recently by setting up a committee to consider what to do with its collision repair unit. The Canadian automotive retail group is now mulling a potential sale of one of its core business units as part of a broader strategic review for the segment it says isn't fully reflected in its shares. The company only a day prior said it would focus more on its core dealership and collision operations after saying it would discontinue its digital auto-retailing initiatives, which are its online consumer-to-consumer finance and insurance business and its Kijiji-based instant cash offer business. In the same week, AutoCanada's large minority investor, Rob Steele, expanded his stake in the company and bringing his ownership to 10.4%. (adriano.marchese@wsj.com)

1215 ET - Demand for Carnival's cruises is strong and broad-based, CEO Josh Weinstein says on a call with analysts. After experiencing a disruption in bookings earlier this year, trends rebounded meaningfully over the past three months, he says: "With 2026 largely on the books, our attention is turning to 2027 and beyond." For 2027, Carnival is already halfway booked, with both occupancy and pricing at record levels, according to Weinstein. "2028 is also off to an excellent start at higher occupancy and even higher prices year-over-year, and our booking curve is further out than it has ever been at this point in the year," he adds. (connor.hart@wsj.com)

1213 ET - Carnival CEO Josh Weinstein says strong demand and operational improvements have fully offset higher fuel costs. "Yes, fuel can be a volatile input cost, with a track record of prices going up and down," Weinstein says on a call with analysts. "But amidst that noise, let's not lose sight of our underlying operational improvement." The cruise operator is generating more demand, with strong booking trends and pricing power. At the same time, the company has netted more than $150 million in operational improvements since its last quarterly readout in June, Weinstein says. Taken together, Carnival has fully offset the impact of higher fuel prices that are currently expected, according to Weinstein. Carnival jumps 12%. (connor.hart@wsj.com)

1204 ET - Fair Isaac is dealing with two key negative developments, Deutsche Bank says in a note. Analyst Faiza Alwy says FHFA director Bill Pulte indicated that competitor VantageScore's 20 point discount to FICO has been removed and both scores will now be treated the same by the GSEs. "This would likely in and of itself result in higher number of mortgages that will see favorable pricing with VS4 vs. FICO Classic," Alwy says. Additionally, Rocket Mortgage said it will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for all eligible loans, and during 4Q will default to VS4 for mortgages delivered to the federal housing agencies, VA home loans and any other eligible mortgages, according to Alwy. Fair Isaac tumbles 27%. (kelly.cloonan@wsj.com)

1134 ET - Saudi Arabia leads major Gulf stocks lower Tuesday, with the Tadawul All Share Index falling 1.2%. Qatar's QE Index loses 1.1%, Abu Dhabi's benchmark index declines 0.3% and the Dubai Financial Market General Index slips 0.2%. Risks from the Middle East conflict remain elevated despite recovering regional oil flows. S&P Global Market Intelligence says its base case no longer assumes a clear end to the war, with Gulf exports likely to fluctuate as security conditions affect ships' willingness to transit the Strait of Hormuz. It expects only gradual improvement through 2027, with energy, freight, insurance and logistics costs remaining elevated. (farhan.rafid@wsj.com)

1125 ET - Volkswagen's latest partnership with Chinese battery maker Gotion High-Tech shows how Europe's auto business can selectively integrate products and tech from China, says Philipp Seidel, principal at Arthur D. Little. The German auto group said this week it was teaming up with Gotion--in which it is also an investor--on joint ventures to produce lithium-battery cells at sites in Spain and Slovakia, as well as a cathode-material facility in Morocco. Chinese players have a competitive advantage in lithium batteries, Seidel notes. "For European industry, selectively integrating this know-how into its own value chain can therefore be more effective than trying to recreate every capability independently from scratch," he says. "The strategic question is not whether Europe should use Chinese technology, but whether that technology transfer helps Europe build its own capabilities--or simply creates a new dependency." (joshua.kirby@wsj.com; @joshualeokirby)

1124 ET - Volkswagen's latest partnership with Chinese battery maker Gotion High-Tech shows how Europe's auto business can selectively integrate products and tech from China, says Philipp Seidel, principal at Arthur D. Little. The German auto group said this week it was teaming up with Gotion--in which it is also an investor--on joint ventures to produce lithium-battery cells at sites in Spain and Slovakia, as well as a cathode-material facility in Morocco. Chinese players have a competitive advantage in lithium batteries, Seidel notes. "For European industry, selectively integrating this know-how into its own value chain can therefore be more effective than trying to recreate every capability independently from scratch," he says. "The strategic question is not whether Europe should use Chinese technology, but whether that technology transfer helps Europe build its own capabilities--or simply creates a new dependency." (joshua.kirby@wsj.com; @joshualeokirby)

1124 ET - Ag Growth shareholders risk having their positions diluted with the company's upcoming debt maturities. CIBC's Hamir Patel downgrades the target price of the stock to C$8.50 from C$19, over the dilution risk as well as from "moderated FCF [free cash flow] projections given higher debt servicing cost assumptions." Shares are currently trading 1.4% lower at C$6.88 and are down 70$ year-to-date. "Despite the recent sell-off (down 47% since September 23), we remain on the sidelines given elevated leverage and continued uncertainty on AFN's refinancing plans for its upcoming debt maturities," he says. However, Patel notes that as a positive, farm sector headwinds are gradually easing, and underlying pressures should subside. (adriano.marchese@wsj.com)

1019 ET - Sterling shows little reaction after U.K. Prime Minister Andy Burnham announced plans to reform pensions in a speech Tuesday, as widely expected. From 2030 the government will adjust the triple lock on pensions, which ensures state pensions rise in line with average earnings, inflation or 2.5%, whichever is highest. Instead pensions will rise every year in line with inflation, or 2.5%. Burnham scrapped the earnings element, saying state pensions would hold their value "relative to earnings over time." He also pledged to build a national care service, create a public body to invest in the electricity grid and strengthen control of water companies. Sterling falls 0.2% to $1.3222 and is flat at 0.8573 per euro, both little changed from levels before the speech. (renae.dyer@wsj.com)

1005 ET - U.K. utilities shares edge lower as investors react to Prime Minister Andy Burnham's proposal for a new public body to invest in Britain's electricity grid, AJ Bell's Russ Mould writes. Reports before market open Tuesday suggested GB Grid would increase competition for new grid projects. Prime Minister Burnham confirmed the plans in his afternoon address to the ruling Labour Party's annual conference Tuesday. The FTSE 100 utilities sector fell 1.2% at the open, before paring losses to trade down 0.15%. "While the market reaction suggests this is not considered to be an existential threat just yet, there will be concern that this is the first step on the road to renationalisation of the electricity network," Mould says.