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>Darden Restaurants delivered a decent quarterly result exceeding sales expectations and having fairly good earnings despite the highly inflationary environment.</li><li>The 2022 fiscal has been good for the company despite the impact of the Omicron variant as its brands continue to strengthen their business models.</li><li>While LongHorn and other business segments saw lower segment profit margins in the last quarter due to higher inflation levels and other investments made in those businesses since pre-COVID, Olive Garden and Fine Dining segments saw segment profit margin growth this quarter.</li></ul>

Darden Restaurants delivered a decent quarterly result exceeding sales expectations and having fairly good earnings despite the highly inflationary environment.The 2022 fiscal has been good for the company despite the impact of the Omicron variant as its brands continue to strengthen their business models.While LongHorn and other business segments saw lower segment profit margins in the last quarter due to higher inflation levels and other investments made in those businesses since pre-COVID, Olive Garden and Fine Dining segments saw segment profit margin growth this quarter.

Credit

<ul><li>Darden Restaurants had a decent 2021 despite the volatility in the macro-economic environment for restaurants.</li><li>However, now that the Covid-19 cases are decreasing and the operating environment normalizing, the company is back on track over the past few weeks.</li><li>The management continues to be optimistic and believes that Darden can compete effectively in the current operating environment.</li></ul>

Darden Restaurants had a decent 2021 despite the volatility in the macro-economic environment for restaurants.However, now that the Covid-19 cases are decreasing and the operating environment normalizing, the company is back on track over the past few weeks.The management continues to be optimistic and believes that Darden can compete effectively in the current operating environment.

Darden Restaurants: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Capital Markets

Darden Restaurants / Equity Capital Markets

<ul><li>Darden performed well in 2021 despite the volatile environment.</li><li>However, now that the Covid-19 cases are decreasing and the operating environment normalizing, the company is back on track over the past few weeks.</li><li>The management continues to be optimistic and believes that Darden can compete effectively in the current operating environment.</li></ul>

Darden performed well in 2021 despite the volatile environment.However, now that the Covid-19 cases are decreasing and the operating environment normalizing, the company is back on track over the past few weeks.The management continues to be optimistic and believes that Darden can compete effectively in the current operating environment.

Darden Restaurants: Financial & Price Forecasts

<ul><li>Darden Restaurants’ stock has been hit after the rising fears associated with the fast-spreading Omicron variant.</li><li>However, cost pressures on commodities and labour have continued to be beyond management expectations with inflation beyond 6% hitting the margins.</li><li>Given the current uncertainty, we give their stock a 'Hold' rating with a revised target price.</li></ul>

Darden Restaurants’ stock has been hit after the rising fears associated with the fast-spreading Omicron variant.However, cost pressures on commodities and labour have continued to be beyond management expectations with inflation beyond 6% hitting the margins.Given the current uncertainty, we give their stock a 'Hold' rating with a revised target price.

Darden Restaurants Inc. - Investment Thesis

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Last week we noted that in order for us to turn bullish on the broad market, we need to see breakouts to YTD highs in small-caps (IWM), Financials (XLF), Energy (XOP), and equal-weighted Discretionary (RCD). We now have the breakout we needed in Energy (RYE, XOP), but the other areas are still consolidating. Therefore, we still see a mixed market and we remain neutral yet constructive overall.Stocks highlighted: XOP, WTI Crude Oil, IWD, IWM, S&amp;P 500, Equal-weighted Nasdaq 100 (QQEW), HLT, SEAS, DRI, PLAY, COP, EOG, PXD, OXY, DVN, CLR, CTRA, FANG, MRO, XEC, APA, AR, MUR, RRC, SWN, MTDR, PDCE, SM, BSM, CPE, VNOM, LPI, DMLP, CHX, WHD, NOA, TTI, NR, EXTN, NGS, FET, and CCLP

Last week we noted that in order for us to turn bullish on the broad market, we need to see breakouts to YTD highs in small-caps (IWM), Financials (XLF), Energy (XOP), and equal-weighted Discretionary (RCD). We now have the breakout we needed in Energy (RYE, XOP), but the other areas are still consolidating. Therefore, we still see a mixed market and we remain neutral yet constructive overall.Stocks highlighted: XOP, WTI Crude Oil, IWD, IWM, S&amp;P 500, Equal-weighted Nasdaq 100 (QQEW), HLT, SEAS, DRI, PLAY, COP, EOG, PXD, OXY, DVN, CLR, CTRA, FANG, MRO, XEC, APA, AR, MUR, RRC, SWN, MTDR, PDCE, SM, BSM, CPE, VNOM, LPI, DMLP, CHX, WHD, NOA, TTI, NR, EXTN, NGS, FET, and CCLP

Upgrading Energy To Overweight; WTI Crude Oil and XOP With Major Long-Term Breakouts

United States

Darden Restaurants, Inc. owns and operates full service restaurants. The Company operates a variety of seafood and Italian restaurants under a multitude of brand names. Darden Restaurants owns restaurants through North America.

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Darden Restaurants (DRI US)

Darden Restaurants Inc.: Growth Strategy

Darden Restaurants delivered a decent quarterly result exceeding sales expectations and having fairly good earnings despite the highly...

Baptista Research

Darden Restaurants: Detailed Credit Analysis & Financial Strength Evaluation Report

Darden Restaurants had a decent 2021 despite the volatility in the macro-economic environment for restaurants. However, now that the Covid-19...

Baptista Research

Darden Restaurants: Financial & Price Forecasts

Darden performed well in 2021 despite the volatile environment. However, now that the Covid-19 cases are decreasing and the operating environment...

Baptista Research

Darden Restaurants Inc. - Investment Thesis

Darden Restaurants’ stock has been hit after the rising fears associated with the fast-spreading Omicron variant. However, cost pressures on...

Baptista Research

Upgrading Energy To Overweight; WTI Crude Oil and XOP With Major Long-Term Breakouts

Recent developments lead us to believe that Energy is likely to outperform moving forward: WTI crude oil is breaking above $77, and the RYE and XOP...

Vermilion Research

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