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>This is our first report on software-based security solutions provider, CyberArk.</li><li>The company had a strong Q3 2023 with its bookings growth accelerating, total bookings significantly outpacing the company's guidance framework and seeing a rise in demand for its platform.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on software-based security solutions provider, CyberArk.The company had a strong Q3 2023 with its bookings growth accelerating, total bookings significantly outpacing the company's guidance framework and seeing a rise in demand for its platform.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

CyberArk Software Ltd.: Initiation of Coverage – Business Strategy Major Drivers

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

TSMC (Taiwan Semiconductor Manufacturing) / Technical Analysis

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>We believe there is significant evidence that global equities (MSCI ACWI) have bottomed, and a year-end rally has begun. Buys highlighted in global Technology, Discretionary, Real Estate, and Steel/Mining.</li>
<li>We discussed in our prior Int'l Compass (11/2/23) how the false breakdown in MSCI ACWI (local currency) was bullish, and a potent rally has ensued. We expect more upside ahead.</li>
<li>Now getting bullish 3+ month downtrend reversals and false breakdowns in the EURO STOXX 50, ACWI-US, MSCI ACWI ex-US (ACWX-US), MSCI EM (EEM-US), and EAFE (EFA-US). Major risk-on signals everywhere.</li>
</ul>


We believe there is significant evidence that global equities (MSCI ACWI) have bottomed, and a year-end rally has begun. Buys highlighted in global Technology, Discretionary, Real Estate, and Steel/Mining.
We discussed in our prior Int'l Compass (11/2/23) how the false breakdown in MSCI ACWI (local currency) was bullish, and a potent rally has ensued. We expect more upside ahead.
Now getting bullish 3+ month downtrend reversals and false breakdowns in the EURO STOXX 50, ACWI-US, MSCI ACWI ex-US (ACWX-US), MSCI EM (EEM-US), and EAFE (EFA-US). Major risk-on signals everywhere.


Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech, Cons. Disc., RE, Steel

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

<ul>
<li>HashiCorp is a cloud infrastructure automation company offering industry leading-products with high-profile customer list and freemium business model. The unicorn was backed by leading VC investors. </li>
<li>HashiCorp is the open-source software company, which is well-positioned to gain market share in the cloud infrastructure, security and networking addressable markets. </li>
<li>The company filed to go public this month. Our post-IPO valuation implies substantial upside potential to last private round valuation and we have favorable view of the upcoming IPO.</li>
</ul>


HashiCorp is a cloud infrastructure automation company offering industry leading-products with high-profile customer list and freemium business model. The unicorn was backed by leading VC investors. 
HashiCorp is the open-source software company, which is well-positioned to gain market share in the cloud infrastructure, security and networking addressable markets. 
The company filed to go public this month. Our post-IPO valuation implies substantial upside potential to last private round valuation and we have favorable view of the upcoming IPO.


HashiCorp IPO: Serious Player in Multi-Cloud Infrastructure Automation Segment

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<p style="text-align: justify;"><a href="https://www.smartkarma.com/entities/crowdstrike-holdings-inc" target="_blank" data-smartkarma-citation="entities:28117:1" rel="noopener">Crowdstrike Holdings Inc (CRWD US)</a> considered the impacts that Coronavirus is having on end market demand and its sales channel before issuing its 1Q and FY2021 guidance. And then guided FY21 revenue growth to 51%, 10pts ahead of an already bulled up sellside consensus.</p><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div>

Crowdstrike Holdings Inc (CRWD US) considered the impacts that Coronavirus is having on end market demand and its sales channel before issuing its 1Q and FY2021 guidance. And then guided FY21 revenue growth to 51%, 10pts ahead of an already bulled up sellside consensus.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Social Distancing? Don’t Stay Away from This Crowd (Strike)

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Ping Identity Holding Corp / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ping-identity-holding-corp" target="_blank" data-smartkarma-citation="entities:28271:1" rel="noopener">Ping Identity Holding Corp (PING US)</a> is expected to complete its IPO in the next few days. The company plans to offer 12.5 million shares at $14 to $16 per share. At the midpoint of its proposed range, the company would raise $188 million at a $1.2 billion valuation. </li>
<li>We estimate Ping Identity Holding to generate revenue of $229.5 million in 2019 (up 13.8% YoY) and $257.9 million in 2020 (up 12.4% YoY). We estimate Subscription and Professional Services &amp; other to represent 92.6% and 7.4% of total revenue in 2019, respectively. We have assumed the company's gross margins to increase from 77.9% in 2018 to 76.9% in 2019, and 76.6% in 2020.</li>
<li><strong>Our base case valuation of Ping Identity Holding is $1.5 billion (market cap) or $19.18 per share, representing 27% upside to the mid-point of the IPO valuation range of $14 to $16 per share. As such, we have a positive view of this IPO.</strong></li>
</ul>



Ping Identity Holding Corp (PING US) is expected to complete its IPO in the next few days. The company plans to offer 12.5 million shares at $14 to $16 per share. At the midpoint of its proposed range, the company would raise $188 million at a $1.2 billion valuation. 
We estimate Ping Identity Holding to generate revenue of $229.5 million in 2019 (up 13.8% YoY) and $257.9 million in 2020 (up 12.4% YoY). We estimate Subscription and Professional Services &amp; other to represent 92.6% and 7.4% of total revenue in 2019, respectively. We have assumed the company's gross margins to increase from 77.9% in 2018 to 76.9% in 2019, and 76.6% in 2020.
Our base case valuation of Ping Identity Holding is $1.5 billion (market cap) or $19.18 per share, representing 27% upside to the mid-point of the IPO valuation range of $14 to $16 per share. As such, we have a positive view of this IPO.


Ping Identity Holding Corp IPO Valuation Analysis

Israel

CyberArk Software Ltd. provides information technology security solutions. The Company offers services which protect organizational privileged accounts from cyber attacks.

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CyberArk Software Ltd (CYBR US)

CyberArk Software Ltd.: Initiation of Coverage – Business Strategy Major Drivers

This is our first report on software-based security solutions provider, CyberArk. The company had a strong Q3 2023 with its bookings growth...

Baptista Research

Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech, Cons. Disc., RE, Steel

There is significant evidence that global equities $ACWI have bottomed, and a year-end rally has begun. It all started when we discussed that the...

Vermilion Research

HashiCorp IPO: Serious Player in Multi-Cloud Infrastructure Automation Segment

HashiCorp, one of the leaders among infrastructure automation platform providers, filed to go public after a successful Nasdaq debut of open source...

Andrei Zakharov

Ping Identity Holding Corp IPO Valuation Analysis

Ping Identity Holding Corp (PING US) is expected to complete its IPO in the next few days. The company plans to offer 12.5 million shares at $14...

Douglas Kim

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CyberArk Software Ltd.: Initiation of Coverage – Business Strategy Major Drivers

This is our first report on software-based security solutions provider, CyberArk. The company had a strong Q3 2023 with its bookings growth...

Baptista Research

Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech, Cons. Disc., RE, Steel

There is significant evidence that global equities $ACWI have bottomed, and a year-end rally has begun. It all started when we discussed that the...

Vermilion Research

HashiCorp IPO: Serious Player in Multi-Cloud Infrastructure Automation Segment

HashiCorp, one of the leaders among infrastructure automation platform providers, filed to go public after a successful Nasdaq debut of open source...

Andrei Zakharov

Social Distancing? Don’t Stay Away from This Crowd (Strike)

Crowdstrike Holdings Inc (CRWD US) considered the impacts that Coronavirus is having on end market demand and its sales channel before issuing its...

Aaron Gabin

Ping Identity Holding Corp IPO Valuation Analysis

Ping Identity Holding Corp (PING US) is expected to complete its IPO in the next few days. The company plans to offer 12.5 million shares at $14...

Douglas Kim