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>AutoNation reported its first quarter 2024 results, indicating an overall steady performance amidst various market dynamics.</li><li>There was robust consumer demand for vehicles leading to the first quarterly increase in both new and used vehicle sales since the second quarter of 2021.</li><li>New vehicle unit sales grew by 7%, and while the average selling price decreased by 5%, revenue from new vehicles rose by 2%.</li></ul>

AutoNation reported its first quarter 2024 results, indicating an overall steady performance amidst various market dynamics.There was robust consumer demand for vehicles leading to the first quarterly increase in both new and used vehicle sales since the second quarter of 2021.New vehicle unit sales grew by 7%, and while the average selling price decreased by 5%, revenue from new vehicles rose by 2%.

AutoNation Inc.: Proliferation of AutoNation Finance & Strategic Capital Allocation & Key Growth Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>AutoNation has consistently maintained profitability, even during economic downturns</li><li>F&amp;I business has grown significantly, increasing contribution to overall profits</li><li>Good capital allocation decisions have boosted economic returns</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

AutoNation has consistently maintained profitability, even during economic downturnsF&amp;I business has grown significantly, increasing contribution to overall profitsGood capital allocation decisions have boosted economic returnsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Autonation Inc (AN) - Thursday, Mar 14, 2024

<ul><li>This is our first report on automotive retail major, AutoNation Inc. The company reported strong growth figures in its fourth quarter earnings call of 2023, with particularly robust demand for new vehicles.</li><li>New vehicle revenue increased 7% while unit sales were up 8%, driven by strong Import growth and an uptick in Premium Luxury sales.</li><li>AutoNation also experienced an increase in new vehicle inventory levels that are projected to continue growing in 2024.</li></ul>

This is our first report on automotive retail major, AutoNation Inc. The company reported strong growth figures in its fourth quarter earnings call of 2023, with particularly robust demand for new vehicles.New vehicle revenue increased 7% while unit sales were up 8%, driven by strong Import growth and an uptick in Premium Luxury sales.AutoNation also experienced an increase in new vehicle inventory levels that are projected to continue growing in 2024.

Autonation Inc.: Initiation Of Coverage - What Is Their Core Business Strategy? - Major Drivers

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>If <a href="https://www.smartkarma.com/entities/descente-ltd" target="_blank" data-smartkarma-citation="entities:8225:1" rel="noopener">Descente Ltd (8114 JP)</a> earnings disappoints, buy the dip. <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> is buying for the long-term.</li>
<li>
<a href="https://www.smartkarma.com/entities/mgm-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:472:1" rel="noopener">MGM China Holdings (2282 HK)</a> has gained market share in mass table market, VIP, and total revenue. Yet MGM's FY24E EV/EBITDA is ~40% below its two-year forward average EV/EBITDA pre-Covid.</li>
<li>If you had a J-REIT portfolio, <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> would go in and push something else out or smaller. I think one gets beta-plus, which is usually called alpha.</li>
</ul>


If Descente Ltd (8114 JP) earnings disappoints, buy the dip. Itochu Corp (8001 JP) is buying for the long-term.

MGM China Holdings (2282 HK) has gained market share in mass table market, VIP, and total revenue. Yet MGM's FY24E EV/EBITDA is ~40% below its two-year forward average EV/EBITDA pre-Covid.
If you had a J-REIT portfolio, Sankei Real Estate (2972 JP) would go in and push something else out or smaller. I think one gets beta-plus, which is usually called alpha.


Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Pinewood Technologies Group / Event-Driven

<ul>
<li>On 17 October, <a href="https://www.smartkarma.com/entities/autonation-inc" target="_blank" data-smartkarma-citation="entities:16548:1" rel="noopener">Autonation Inc (AN US)</a> also withdrew its proposal for <a href="https://www.smartkarma.com/entities/pendragon-plc" target="_blank" data-smartkarma-citation="entities:22080:1" rel="noopener">Pendragon PLC (PDG LN)</a>. Lithia's deal is likely to obtain shareholder's approval, for lack of a better offer.</li>
<li>Holding on would mean receiving 24.5p and staying in a small cap SaaS, whose shares are implicitly valued at 6.5p, instead of the 10.9p that Pendragon claims it is worth.</li>
<li>Readacross: Hedin, AutoNation, or someone else, could take a closer look at <a href="https://www.smartkarma.com/entities/vertu-motors-plc" target="_blank" data-smartkarma-citation="entities:23247:1" rel="noopener">Vertu Motors (VTU LN)</a>.</li>
</ul>


On 17 October, Autonation Inc (AN US) also withdrew its proposal for Pendragon PLC (PDG LN). Lithia's deal is likely to obtain shareholder's approval, for lack of a better offer.
Holding on would mean receiving 24.5p and staying in a small cap SaaS, whose shares are implicitly valued at 6.5p, instead of the 10.9p that Pendragon claims it is worth.
Readacross: Hedin, AutoNation, or someone else, could take a closer look at Vertu Motors (VTU LN).


United States

AutoNation, Inc. retails, finances, and services new and used vehicles.  The Company also provides other related services and products, such as the sale of parts and accessories, extended service contracts, aftermarket automotive products, and collision repair services.  AutoNation operates throughout the United States.

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Autonation Inc (AN US)

AutoNation Inc.: Proliferation of AutoNation Finance & Strategic Capital Allocation & Key Growth Drivers

AutoNation reported its first quarter 2024 results, indicating an overall steady performance amidst various market dynamics. There was robust...

Baptista Research

Autonation Inc (AN) - Thursday, Mar 14, 2024

AutoNation has consistently maintained profitability, even during economic downturns. F&I business has grown significantly, increasing contribution...

Value Investors Club (VIC)

Autonation Inc.: Initiation Of Coverage - What Is Their Core Business Strategy? - Major Drivers

This is our first report on automotive retail major, AutoNation Inc. The company reported strong growth figures in its fourth quarter earnings...

Baptista Research

Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

AutoNation Drops from the Race

On 17 October, Autonation Inc (AN US) also withdrew its proposal for Pendragon PLC (PDG LN). Lithia's deal is likely to obtain shareholder's...

Jesus Rodriguez Aguilar

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