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>Deere managed to exceed analyst expectations in terms of revenue as well as earnings.</li><li>Revenues and net sales were up and price realization was positive.</li><li>Deere viewed production and precision ag net revenue to rise.</li></ul>

Deere managed to exceed analyst expectations in terms of revenue as well as earnings.Revenues and net sales were up and price realization was positive.Deere viewed production and precision ag net revenue to rise.

<ul><li>Deere managed to deliver an all-around beat in the first quarter of the new fiscal year.</li><li>The equipment operations had a 20% margin in the financial results for the quarter.</li><li>The management expects demand to exceed the industry's ability to deliver for another year.</li></ul>

Deere managed to deliver an all-around beat in the first quarter of the new fiscal year.The equipment operations had a 20% margin in the financial results for the quarter.The management expects demand to exceed the industry's ability to deliver for another year.

Deere & Company: New Dealer Business System & Other Drivers

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>This model seeks companies that are potentially “overearning”, defined as companies with unusually high margins relative to their own history or relative to the industry. </li>
<li>The reasons for the margin increases are sometimes unsustainable or fraudulent. The  critical judgement involves to what extent unsustainable margins are embedded in a company’s forecasts and/or the stock’s valuation. </li>
<li>These shorts tend to have moderate to higher betas, higher valuations due to recent strong results and good short responses to subsequently disappointing earnings.</li>
</ul>


This model seeks companies that are potentially “overearning”, defined as companies with unusually high margins relative to their own history or relative to the industry. 
The reasons for the margin increases are sometimes unsustainable or fraudulent. The  critical judgement involves to what extent unsustainable margins are embedded in a company’s forecasts and/or the stock’s valuation. 
These shorts tend to have moderate to higher betas, higher valuations due to recent strong results and good short responses to subsequently disappointing earnings.


Overearning Short Candidates: Builders FirstSource, IBM, Forward Air Co, Deere & Co.

<ul><li>Deere had a challenging start to the new fiscal as a result of a work stoppage at some of its biggest U.S. plants, but managed to resolve the situation with the help of a new contract.</li><li>The company delivered another all-around beat and the performance across its segments was fueled by persistently high demand and increased production rates.</li><li>Furthermore, they launched several large wheel loaders, including 744 P-tier, 824 P-tier, 844 P-tier, and brand-new 904 P-tier.</li></ul>

Deere had a challenging start to the new fiscal as a result of a work stoppage at some of its biggest U.S. plants, but managed to resolve the situation with the help of a new contract.The company delivered another all-around beat and the performance across its segments was fueled by persistently high demand and increased production rates.Furthermore, they launched several large wheel loaders, including 744 P-tier, 824 P-tier, 844 P-tier, and brand-new 904 P-tier.

Deere & Co: New Product Launches & Other Drivers

<ul><li>Despite ongoing supply issues, Deere increased production rates in the past quarter, which led to a 25% increase in net sales.</li><li>The demand-driven growth in the construction and forestry industries also contributed to the division's impressive success in the third quarter.</li><li>Furthermore, because of ongoing supply issues that result in manufacturing inefficiencies, overhead expenses also increase over time.</li></ul>

Despite ongoing supply issues, Deere increased production rates in the past quarter, which led to a 25% increase in net sales.The demand-driven growth in the construction and forestry industries also contributed to the division's impressive success in the third quarter.Furthermore, because of ongoing supply issues that result in manufacturing inefficiencies, overhead expenses also increase over time.

United States

Deere & Company manufactures and distributes a range of agricultural, construction and forestry, and commercial and consumer equipment.  The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.

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Deere & Co (DE US)

Deere & Company: Healthy Demand

Deere managed to exceed analyst expectations in terms of revenue as well as earnings. Revenues and net sales were up and price realization was...

Baptista Research

Deere & Company: New Dealer Business System & Other Drivers

Deere managed to deliver an all-around beat in the first quarter of the new fiscal year. The equipment operations had a 20% margin in the...

Baptista Research

Overearning Short Candidates: Builders FirstSource, IBM, Forward Air Co, Deere & Co.

Margin over-earners are fertile hunting ground for shorts if the reasons for the margin increase are unsustainable or fraudulent. This week:...

Eric Fernandez, CFA

Deere & Co: New Product Launches & Other Drivers

Deere had a challenging start to the new fiscal as a result of a work stoppage at some of its biggest U.S. plants, but managed to resolve the...

Baptista Research

Deere & Co: Major Drivers

Despite ongoing supply issues, Deere increased production rates in the past quarter, which led to a 25% increase in net sales. The demand-driven...

Baptista Research

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