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 Capital Markets

<ul><li>This is a special one-time report on the popular meme stock, Aterian Inc (NASDAQ:ATER).</li><li>The company operates through Amazon itself and engages in selling its own products as well as those it buys those from other companies.</li><li>We are looking to evaluate if there is any upside potential in the stock.</li></ul>

This is a special one-time report on the popular meme stock, Aterian Inc (NASDAQ:ATER).The company operates through Amazon itself and engages in selling its own products as well as those it buys those from other companies.We are looking to evaluate if there is any upside potential in the stock.

Aterian Inc.: Is There Any Upside Potential In This Meme Stock? (12/2021)

Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

Equity Bottom-Up

<ul>
<li>Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed materially, and the outlook remains gloomy.</li>
<li>Q3 net revenues reached $68.1 mln (+16% YoY), of which $35.4 mln were supported by organic business and $30.7 mln from recent M&amp;A activity.</li>
<li>We believe a share capital injection is in the cards. We expect ATER will be shortly forced to issue new shares at a discount to finance its operations.</li>
</ul>


Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed materially, and the outlook remains gloomy.
Q3 net revenues reached $68.1 mln (+16% YoY), of which $35.4 mln were supported by organic business and $30.7 mln from recent M&amp;A activity.
We believe a share capital injection is in the cards. We expect ATER will be shortly forced to issue new shares at a discount to finance its operations.


Aterian Q3 Results: Outlook Remains Gloomy

<ul>
<li>ATER has renegotiated its financial debt and is being squeezed by its lender.</li>
<li>In the short term, Aterian will suffer a massive capital dilution effect.</li>
<li>In the long term, the sustainability of the business is key.</li>
</ul>


ATER has renegotiated its financial debt and is being squeezed by its lender.
In the short term, Aterian will suffer a massive capital dilution effect.
In the long term, the sustainability of the business is key.


<ul>
<li>ATER is set to fail to grow organically double-digit.</li>
<li>We think they will be unable to move to double-digit EBITDA and command 50% FCFF conversion.</li>
<li>ATER will continue diluting its share capital base.</li>
<li>The company has poor management credibility.</li>
<li>ATER doesn't have a strong and sustainable MOAT.</li>
</ul>


ATER is set to fail to grow organically double-digit.
We think they will be unable to move to double-digit EBITDA and command 50% FCFF conversion.
ATER will continue diluting its share capital base.
The company has poor management credibility.
ATER doesn't have a strong and sustainable MOAT.


Our Investment Thesis On Aterian Does Not Hold Anymore

<ul><li>Accretive M&amp;A deals are much more difficult to achieve after price corrections.</li><li>Aterian is inexpensive compared to its private market peer but for the right reason.</li><li>At the current price, Aterian is inexpensive, and we see decent upside despite lowering our target price.</li><li>There is still significant risk looming for Aterian, and Q1 earnings left much to be desired.</li></ul>

Accretive M&amp;A deals are much more difficult to achieve after price corrections.Aterian is inexpensive compared to its private market peer but for the right reason.At the current price, Aterian is inexpensive, and we see decent upside despite lowering our target price.There is still significant risk looming for Aterian, and Q1 earnings left much to be desired.

Aterian Update After Q1 2021: Valuation Looks Compelling After A Huge Sell-Off

United States

Aterian, Inc. provides consumer product platform. The Company offers home and kitchen appliances, health and wellness, beauty, and consumer electronics. Aterian serves customers worldwide.

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Aterian (ATER US)

Aterian Inc.: Is There Any Upside Potential In This Meme Stock? (12/2021)

This is a special one-time report on the popular meme stock, Aterian Inc (NASDAQ:ATER). The company operates through Amazon itself and engages in...

Baptista Research

Aterian Q3 Results: Outlook Remains Gloomy

Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed...

Moat Investing

Aterian: Killing Me Softly

ATER has renegotiated its financial debt and is being squeezed by its lender. In the short term, Aterian will suffer a massive capital dilution...

Moat Investing

Our Investment Thesis On Aterian Does Not Hold Anymore

ATER is set to fail to grow organically double-digit. We think they will be unable to move to double-digit EBITDA and command 50% FCFF...

Moat Investing

Aterian Update After Q1 2021: Valuation Looks Compelling After A Huge Sell-Off

Accretive M&A deals are difficult to achieve after price corrections. Aterian is inexpensive compared to its private market peer but...

Moat Investing

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