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>Allegro MicroSystems reported its second quarter fiscal 2026 earnings, showcasing robust financial performance and strategic gains, particularly in the automotive and data center markets.</li><li>The company achieved net sales of $214 million, depicting a 5% sequential increase and a 14% year-over-year growth.</li><li>The gross margin was recorded at 49.6%, with a non-GAAP earnings per share of $0.13, both exceeding the company’s guided ranges.</li></ul>

Allegro MicroSystems reported its second quarter fiscal 2026 earnings, showcasing robust financial performance and strategic gains, particularly in the automotive and data center markets.The company achieved net sales of $214 million, depicting a 5% sequential increase and a 14% year-over-year growth.The gross margin was recorded at 49.6%, with a non-GAAP earnings per share of $0.13, both exceeding the company’s guided ranges.

Allegro MicroSystems Is Turbocharging the EV Revolution — And Its E-Mobility Power Play Is Just Beginning!

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In April I wrote <a href="https://www.smartkarma.com/entities/sanken-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:6073:1" rel="noopener">Sanken Electric (6707 JP)</a> vs <a href="https://www.smartkarma.com/entities/allegro-microsystems-inc" target="_blank" data-smartkarma-citation="entities:29707:1" rel="noopener">Allegro MicroSystems (ALGM US)</a> was attractive as a situation but the spread could be wider. I also noted two activists controlled 45%.</li>
<li>Two weeks later, one activist sold 6%. Presumably they have sold the rest. But now the spread is much wider AND Allegro has fallen sharply off highs. </li>
<li>Allegro is adjacent to the AI data centre play, making sensor ICs for power management functions. Other affiliate Polar makes more power chips. Sanken's cheap here.</li>
</ul>


In April I wrote Sanken Electric (6707 JP) vs Allegro MicroSystems (ALGM US) was attractive as a situation but the spread could be wider. I also noted two activists controlled 45%.
Two weeks later, one activist sold 6%. Presumably they have sold the rest. But now the spread is much wider AND Allegro has fallen sharply off highs. 
Allegro is adjacent to the AI data centre play, making sensor ICs for power management functions. Other affiliate Polar makes more power chips. Sanken's cheap here.


[Japan Activism] Activists Control LESS of Sanken (6707) Now - But Spread Is Wide and ALGM Grows

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul>
<li>Another week of earnings. I will start with a summary and then go into specific bits from each company.</li>
<li>I continue to like automotive, specifically semiconductors.</li>
<li>However, despite sequentially better results, we are seeing continued weakness in automotive and meaningful weakness in Industrial</li>
</ul>


Another week of earnings. I will start with a summary and then go into specific bits from each company.
I continue to like automotive, specifically semiconductors.
However, despite sequentially better results, we are seeing continued weakness in automotive and meaningful weakness in Industrial


Earnings: ON, AMKR, RMBS, UCTT, AMD, ASMI, KLAC, MPWR, ALGM, STM, INTC

<ul>
<li>Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.</li>
<li>Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.</li>
<li>Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.</li>
</ul>


Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.
Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.
Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.


<ul><li>This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. </li><li>I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.</li><li>We are now seeing the beginning of Industrial weakening.</li></ul>

This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.We are now seeing the beginning of Industrial weakening.

Japan

Allegro Microsystems, Inc. develops advanced semiconductor devices. The Company provides power and sensing solutions for motion control. Allegro Microsystems serves customers worldwide.

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Allegro MicroSystems (ALGM US)

Allegro MicroSystems Is Turbocharging the EV Revolution — And Its E-Mobility Power Play Is Just Beginning!

Allegro MicroSystems reported its second quarter fiscal 2026 earnings, showcasing robust financial performance and strategic gains, particularly...

Baptista Research

[Japan Activism] Activists Control LESS of Sanken (6707) Now - But Spread Is Wide and ALGM Grows

Sanken Electric is at a wide spread (discount) to its holding in ALGM and other assets exist. ALGM has fallen far, making the optionality better.

Travis Lundy

Earnings: ON, AMKR, RMBS, UCTT, AMD, ASMI, KLAC, MPWR, ALGM, STM, INTC

Another week of earnings. I will start with a summary and then go into specific bits from each company. I continue to like automotive,...

Fabricated Knowledge

Earnings: ALGM, LRCX, TOLEY, NVMI, ONTO

Hello, this is a slightly more relaxed week of earnings. I’m going to focus a lot on Allegro and then mention some high-level reads. I’ll keep...

Fabricated Knowledge

Semiconductor Cycles: Industrial and EVs

Plus my new taxonomy of cycles! Where I think each end market is in the cycle. This earnings season, Industrial semiconductor demand has been the...

Fabricated Knowledge

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