Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Western Digital's recent earnings provides a comprehensive look into the company's current standing, reflecting both strengths and challenges.</li><li>The company reported revenue of $2.3 billion for the third fiscal quarter of 2025, which is a 31% year-over-year increase, but a 5% sequential decline.</li><li>Non-GAAP gross margin stood at 40.1%, showcasing an improvement over their previous guidance, with non-GAAP earnings per share reaching $1.36.</li></ul>

Western Digital's recent earnings provides a comprehensive look into the company's current standing, reflecting both strengths and challenges.The company reported revenue of $2.3 billion for the third fiscal quarter of 2025, which is a 31% year-over-year increase, but a 5% sequential decline.Non-GAAP gross margin stood at 40.1%, showcasing an improvement over their previous guidance, with non-GAAP earnings per share reaching $1.36.

Western Digital’s Margin-Expansion Strategy & Market Tailwinds Are Upping Its Game But Is It A Long-Term BUY?

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Stock Spin-offs

Event-Driven

<ul>
<li>Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.</li>
<li>Relative periods of outperformance tend to last for waves of at least 13 years.</li>
<li>The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.</li>
</ul>


Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.
Relative periods of outperformance tend to last for waves of at least 13 years.
The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.


<ul><li>Peloton Interactive has shared its Q2 2025 financial results, highlighting a mix of achievements and challenges.</li><li>The company's strategic focus has been on stabilizing its financial position, improving unit economics, and fostering a solid base for future growth.</li><li>Peloton's approach centers around enhancing its product and service offerings.</li></ul>

Peloton Interactive has shared its Q2 2025 financial results, highlighting a mix of achievements and challenges.The company's strategic focus has been on stabilizing its financial position, improving unit economics, and fostering a solid base for future growth.Peloton's approach centers around enhancing its product and service offerings.

Peloton Interactive: Subscription Business Growth & Financial Deleveraging Are Key Positive Developments!

<ul><li>On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK).</li><li>Sandisk is trading in the when issued market at $48.26. At that share price, SNDK is trading at an EV/ annualized revenue of 1.0x and a price to annualized earnings of 9.9x.</li><li>This price looks relatively attractive given Sandisk’s NAND flash memory partner, Xioxia, is trading at 1.3x TTM revenue.</li></ul>

On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK).Sandisk is trading in the when issued market at $48.26. At that share price, SNDK is trading at an EV/ annualized revenue of 1.0x and a price to annualized earnings of 9.9x.This price looks relatively attractive given Sandisk’s NAND flash memory partner, Xioxia, is trading at 1.3x TTM revenue.

<ul><li>Western Digital Corporation delivered a mixed performance in its second fiscal quarter of 2025, reflecting both strengths and challenges across its two major business units, HDD and Flash.</li><li>Revenue reached $4.3 billion, supported by strong growth in HDD, but tempered by challenges in the Flash segment, which is facing significant pricing pressures.</li><li>On the positive side, the HDD business showed impressive results, characterized by record high revenues and strong adoption of high-capacity enterprise drives.</li></ul>

Western Digital Corporation delivered a mixed performance in its second fiscal quarter of 2025, reflecting both strengths and challenges across its two major business units, HDD and Flash.Revenue reached $4.3 billion, supported by strong growth in HDD, but tempered by challenges in the Flash segment, which is facing significant pricing pressures.On the positive side, the HDD business showed impressive results, characterized by record high revenues and strong adoption of high-capacity enterprise drives.

Western Digital Corporation: 7 Crucial Factors That Will Define Its Success in 2025 & Beyond! - Major Drivers

United States

Western Digital Corporation is a global provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The Company's products include hard drives, solid-state drives, and home entertainment and networking products.

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Western Digital (WDC US)

Western Digital’s Margin-Expansion Strategy & Market Tailwinds Are Upping Its Game But Is It A Long-Term BUY?

Western Digital's recent earnings provides a comprehensive look into the company's current standing, reflecting both strengths and challenges. The...

Baptista Research

Weekly Update (WDC, SNDK, MRP, IAC)

Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%. Relative periods of outperformance...

Richard Howe

Peloton Interactive: Subscription Business Growth & Financial Deleveraging Are Key Positive Developments!

Peloton Interactive has shared its Q2 2025 financial results, highlighting a mix of achievements and challenges. The company's strategic focus has...

Baptista Research

Sandisk Spin-off Overview

On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK). Sandisk is trading in the when issued market at...

Richard Howe

Western Digital Corporation: 7 Crucial Factors That Will Define Its Success in 2025 & Beyond! - Major Drivers

Western Digital Corporation delivered a mixed performance in its second fiscal quarter of 2025, reflecting both strengths and challenges across...

Baptista Research

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