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>Autodesk’s share price has taken a hit like most other software players but the management made the most out of it through the recent share repurchase at a higher rate than in previous quarters, allowing them to offset the past dilution and getting ahead of a significant portion of their estimated dilution in the coming fiscal on account of future acquisitions.</li><li>The company had a strong cash generation during the year and its free cash flow margin of 49% was phenomenal.</li><li>Autodesk’s renewal rates were strong, subscription growth was strong, and digital sales were rapidly expanding, among other factors.</li></ul>

Autodesk’s share price has taken a hit like most other software players but the management made the most out of it through the recent share repurchase at a higher rate than in previous quarters, allowing them to offset the past dilution and getting ahead of a significant portion of their estimated dilution in the coming fiscal on account of future acquisitions.The company had a strong cash generation during the year and its free cash flow margin of 49% was phenomenal.Autodesk’s renewal rates were strong, subscription growth was strong, and digital sales were rapidly expanding, among other factors.

Autodesk Inc.: Financial & Price Forecasts

<ul><li>Autodesk delivered a good third-quarter results with new subscriptions, record subscription renewal rates, a net revenue retention rate toward the high end of the company's range, and solid competitive performance.</li><li>The new Omicron variant of the Covid-19 could also have an adverse impact on the business.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Autodesk delivered a good third-quarter results with new subscriptions, record subscription renewal rates, a net revenue retention rate toward the high end of the company's range, and solid competitive performance.The new Omicron variant of the Covid-19 could also have an adverse impact on the business.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Autodesk Inc: Is The AEC Giant Oversold? (12/2021)

<ul><li>Autodesk delivered yet another outstanding second-quarter results with a subscription revenue growth of 21%.</li><li>Its AutoCAD and AutoCAD LT revenues increased by an impressive 12% whereas its AEC revenue increased by 21%, and manufacturing revenue increased by 12%.</li><li>This resulted in a lower-than expected cash flow forecast which led to the selloff.</li></ul>

Autodesk delivered yet another outstanding second-quarter results with a subscription revenue growth of 21%.Its AutoCAD and AutoCAD LT revenues increased by an impressive 12% whereas its AEC revenue increased by 21%, and manufacturing revenue increased by 12%.This resulted in a lower-than expected cash flow forecast which led to the selloff.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

The bidding for companies in Australia's technology sector continues.
Trading and wealth management software provider <a href="https://www.smartkarma.com/entities/iress-ltd" target="_blank" data-smartkarma-citation="entities:15342:1" rel="noopener">Iress Ltd (IRE AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02400486-3A571606?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> this morning it had received a confidential, unsolicited, non-binding, and indicative proposal from Swedish PE outfit EQT Fund Management via a Scheme of Arrangement at a price range of between A$15.30 and A$15.50 cash per share.
EQT had previously fielded an Offer of A$14.80/share on the 18 June.
Iress' board unanimously concluded that the Proposal was "conditional and did not represent compelling value for Iress shareholders". But the board was:
<blockquote>
prepared to provide it with access to limited non-public information so EQT can develop a proposal that is capable of being recommended to shareholders.
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Iress closed up 15% today, but still 7% below the mid-point of the Indicative Offer price range.
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As always, more below the fold.
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The bidding for companies in Australia's technology sector continues.
Trading and wealth management software provider Iress Ltd (IRE AU) announced this morning it had received a confidential, unsolicited, non-binding, and indicative proposal from Swedish PE outfit EQT Fund Management via a Scheme of Arrangement at a price range of between A$15.30 and A$15.50 cash per share.
EQT had previously fielded an Offer of A$14.80/share on the 18 June.
Iress' board unanimously concluded that the Proposal was "conditional and did not represent compelling value for Iress shareholders". But the board was:

prepared to provide it with access to limited non-public information so EQT can develop a proposal that is capable of being recommended to shareholders.

Iress closed up 15% today, but still 7% below the mid-point of the Indicative Offer price range.

As always, more below the fold.


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The takeovers of Aussie tech companies continue. 
On the 7 June, <a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a>, a global software company, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02382370-2A1302312?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">confirmed and subsequently rejected</a> a non-binding proposal from <a href="https://www.smartkarma.com/entities/autodesk-inc" target="_blank" data-smartkarma-citation="entities:13211:1" rel="noopener">Autodesk Inc (ADSK US)</a> - discussed in <a href="https://skr.ma/we6mt" target="_blank" rel="noopener">Altium Ltd (ALU) Rebuffs Autodesk Offer</a>. This was followed on the same day by  <a href="https://www.smartkarma.com/entities/hansen-technologies-ltd" target="_blank" data-smartkarma-citation="entities:12633:1" rel="noopener">Hansen Technologies (HSN AU)</a>, a provider of software and services globally, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02382235-3A568452?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announcing</a> Australian PE outfit BGH Capital had made a non-binding conditional proposal - see <a href="https://skr.ma/pAK5Y" target="_blank" rel="noopener">Hansen Technologies (HSN AU)'s Assured Deal With BGH</a>.
Now <a href="https://www.smartkarma.com/entities/rhipe-ltd" target="_blank" data-smartkarma-citation="entities:19128:1" rel="noopener">rhipe Ltd (RHP AU)</a>, a provider of cloud-based subscription software-as-a-service licenses,  has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02390415-3A569823?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a non-binding indicative proposal from Norway's Crayon Group Holdings. 
The proposal is conditional on rhipe having a net cash position of A$31mn at the close of the Offer.
A final binding Offer is conditional on due diligence, the unanimous recommendation from rhipe's board, and no MACs.
rhipe has provided Crayon with limited confirmatory due diligence on a  non-exclusive basis.
The Offer price appears opportunistic and is currently trading through terms. 
 More below the fold. 
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The takeovers of Aussie tech companies continue. 
On the 7 June, Altium Ltd (ALU AU), a global software company, confirmed and subsequently rejected a non-binding proposal from Autodesk Inc (ADSK US) - discussed in Altium Ltd (ALU) Rebuffs Autodesk Offer. This was followed on the same day by  Hansen Technologies (HSN AU), a provider of software and services globally, announcing Australian PE outfit BGH Capital had made a non-binding conditional proposal - see Hansen Technologies (HSN AU)'s Assured Deal With BGH.
Now rhipe Ltd (RHP AU), a provider of cloud-based subscription software-as-a-service licenses,  has announced a non-binding indicative proposal from Norway's Crayon Group Holdings. 
The proposal is conditional on rhipe having a net cash position of A$31mn at the close of the Offer.
A final binding Offer is conditional on due diligence, the unanimous recommendation from rhipe's board, and no MACs.
rhipe has provided Crayon with limited confirmatory due diligence on a  non-exclusive basis.
The Offer price appears opportunistic and is currently trading through terms. 
 More below the fold. 





Rhipe (RHP AU): Crayon Sees Silver in Them Thar Clouds

United States

Autodesk, Inc. supplies PC software and multimedia tools. The Company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors.

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Autodesk Inc (ADSK US)

Autodesk Inc.: Financial & Price Forecasts

Autodesk’s share price has taken a hit like most other software players but the management made the most out of it through the recent share...

Baptista Research

Autodesk Inc: Is The AEC Giant Oversold? (12/2021)

Autodesk delivered a good third-quarter results with new subscriptions, record subscription renewal rates, a net revenue retention rate toward the...

Baptista Research

Autodesk Inc. - Investment Thesis

Autodesk delivered yet another outstanding second-quarter results with a subscription revenue growth of 21%. Its AutoCAD and AutoCAD LT revenues...

Baptista Research

Iress (ASX AU) Bats Away EQT - For Now

I would be picking Iress up on any weakness. This space is attracting a lot of interested parties. However, this is still a non-binding situation.

David Blennerhassett

Rhipe (RHP AU): Crayon Sees Silver in Them Thar Clouds

The granting of DD indicates Rhipe is open to a firm offer, yet the non-exclusive nature of that DD suggests other suitors are welcome. I'd be...

David Blennerhassett

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