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

Fisher & Paykel Healthcare Cor / Equity Bottom-Up

<ul><li>Fisher & Paykel Healthcare's recent financial results for the fiscal year ending March 31, 2025, reveal a balanced mix of robust growth and strategic challenges, providing a comprehensive overview of the company's current performance and future outlook.</li><li>On the positive front, the company reported operating revenue of $2.02 billion, marking a 16% increase from the previous year.</li><li>This growth is primarily driven by broad-based expansion across its hospital consumables portfolio and significant contributions from the obstructive sleep apnea (OSA) masks.</li></ul>

Fisher & Paykel Healthcare's recent financial results for the fiscal year ending March 31, 2025, reveal a balanced mix of robust growth and strategic challenges, providing a comprehensive overview of the company's current performance and future outlook.On the positive front, the company reported operating revenue of $2.02 billion, marking a 16% increase from the previous year.This growth is primarily driven by broad-based expansion across its hospital consumables portfolio and significant contributions from the obstructive sleep apnea (OSA) masks.

Fisher & Paykel Healthcare: Initiation of Coverage- How Airvo 3 & Consumable Growth Fuel Explosive Revenue Potential!

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cochlear-ltd" target="_blank" data-smartkarma-citation="entities:918:1" rel="noopener">Cochlear Ltd (COH AU)</a> shares rallied 30%+ over the last six months. Shares are trading at NTM P/E of 51.3x, versus other Australia-listed medical devices companies’ P/E of 23–32x.</li>
<li>The underlying business strength depicted by strong financial performance and guidance raise, and superior product offerings justify the pricey valuation.</li>
<li>Cochlear lifted FY24 net profit guidance to A$385–400M (+26–31% YoY) from A$355–375M. The company expects FY24 cochlear implant volume growth of 10–15% YoY.</li>
</ul>



Cochlear Ltd (COH AU) shares rallied 30%+ over the last six months. Shares are trading at NTM P/E of 51.3x, versus other Australia-listed medical devices companies’ P/E of 23–32x.
The underlying business strength depicted by strong financial performance and guidance raise, and superior product offerings justify the pricey valuation.
Cochlear lifted FY24 net profit guidance to A$385–400M (+26–31% YoY) from A$355–375M. The company expects FY24 cochlear implant volume growth of 10–15% YoY.


Cochlear Ltd (COH AU): Underlying Business Strength Justifies Superior Valuation

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gentrack-group-ltd" target="_blank" data-smartkarma-citation="entities:2752:1" rel="noopener">Gentrack (GTK NZ)</a> and <a href="https://www.smartkarma.com/entities/dorchester-pacific-ltd" target="_blank" data-smartkarma-citation="entities:1854:1" rel="noopener">Turners Automotive (TRA NZ)</a> will be added to the S&amp;P/NZX 50 Index while <a href="https://www.smartkarma.com/entities/synlait-milk-ltd" target="_blank" data-smartkarma-citation="entities:16298:1" rel="noopener">Synlait Milk (SML NZ)</a> and <a href="https://www.smartkarma.com/entities/pacific-edge-ltd" target="_blank" data-smartkarma-citation="entities:20261:1" rel="noopener">Pacific Edge (PEB NZ)</a> will be deleted.</li>
<li>There is a lot to trade on the stocks. The impact in terms of days of ADV appears high but historically there has been volume on implementation date.</li>
<li>The adds have jumped recently and there will be pre-positioning on the stocks. Not so much on the deletes.</li>
</ul>



Gentrack (GTK NZ) and Turners Automotive (TRA NZ) will be added to the S&amp;P/NZX 50 Index while Synlait Milk (SML NZ) and Pacific Edge (PEB NZ) will be deleted.
There is a lot to trade on the stocks. The impact in terms of days of ADV appears high but historically there has been volume on implementation date.
The adds have jumped recently and there will be pre-positioning on the stocks. Not so much on the deletes.


S&P/NZX 50 Index Rebalance: Two High Impact Changes Coming Up

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Fisher & Paykel Healthcare Corp / Equity Bottom-Up

Fisher &amp; Paykel's first-half fiscal 2017 result was slightly below our expectations due largely to higher sales and marketing expenses as a percentage of group revenue. As well, R&amp;D as a percentage of group revenue was marginally higher than anticipated. Interim net profit after tax, or NPAT, of NZD 78.2 million was up 26% on the previous corresponding period, or pcp. An interim dividend of NZD 8.25 cents per share was declared, representing a payout ratio of 60%.We revise our assumptions to reflect higher spending on sales and marketing, and R&amp;D. As result, we trim our fiscal 2017 forecast NPAT by 9% to NZD 170 million. Our NZD 10 per share fair value estimate (AUD 9.50, based on an Australian dollar/New Zealand dollar exchange rate of 1.04) for Fisher &amp; Paykel remains intact. We regard the company as undervalued with shares currently trading at a 13% discount to our intrinsic assessment.Analyst: Chris Kallos, CFA

Fisher &amp; Paykel's first-half fiscal 2017 result was slightly below our expectations due largely to higher sales and marketing expenses as a percentage of group revenue. As well, R&amp;D as a percentage of group revenue was marginally higher than anticipated. Interim net profit after tax, or NPAT, of NZD 78.2 million was up 26% on the previous corresponding period, or pcp. An interim dividend of NZD 8.25 cents per share was declared, representing a payout ratio of 60%.We revise our assumptions to reflect higher spending on sales and marketing, and R&amp;D. As result, we trim our fiscal 2017 forecast NPAT by 9% to NZD 170 million. Our NZD 10 per share fair value estimate (AUD 9.50, based on an Australian dollar/New Zealand dollar exchange rate of 1.04) for Fisher &amp; Paykel remains intact. We regard the company as undervalued with shares currently trading at a 13% discount to our intrinsic assessment.Analyst: Chris Kallos, CFA

Fisher & Paykel Healthcare's Healthy Hospital Sales Offset Dip in Mask Sale Momentum

Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

<ul><li>In this post, Evidente extends its systematic model of earnings certainty to Australian small caps.  The out-performance from large caps with high earnings certainty evident in 2015 was also present amongst small cap stocks.  The top 10 ranked small industrials earnings certainty stocks delivered an annual return of around 8%, well above the stocks with the lowest earnings certainty (-2%).</li><li>The REIT sector dominates the updated top 10 earnings certainty stocks.  The fact that most small cap REITs are trading a significant premiums to book value precisely at a time when commercial rental yields continue to deteriorate suggests that pricing around the sector is becoming increasingly complacent.  I stop short of recommending an outright short position in the sector due to the prospect that commercial rental yields could remain lower for longer thanks to low interest rates and ample liquidity globally.</li><li>I recommend overweight bets in the remaining four top ranked stocks that are not exposed to commercial property: Auckland International Airport, Fisher &amp; Paykel, Sky City Entertainment Group and Brickworks.  These four stocks rank in the top quartile across Evidente's market sentiment signals, which incorporate price momentum and acceleration measures.</li></ul>

In this post, Evidente extends its systematic model of earnings certainty to Australian small caps.  The out-performance from large caps with high earnings certainty evident in 2015 was also present amongst small cap stocks.  The top 10 ranked small industrials earnings certainty stocks delivered an annual return of around 8%, well above the stocks with the lowest earnings certainty (-2%).The REIT sector dominates the updated top 10 earnings certainty stocks.  The fact that most small cap REITs are trading a significant premiums to book value precisely at a time when commercial rental yields continue to deteriorate suggests that pricing around the sector is becoming increasingly complacent.  I stop short of recommending an outright short position in the sector due to the prospect that commercial rental yields could remain lower for longer thanks to low interest rates and ample liquidity globally.I recommend overweight bets in the remaining four top ranked stocks that are not exposed to commercial property: Auckland International Airport, Fisher &amp; Paykel, Sky City Entertainment Group and Brickworks.  These four stocks rank in the top quartile across Evidente's market sentiment signals, which incorporate price momentum and acceleration measures.

Beware Complacency Around Australian Small Cap REITs Risk Exposures

New Zealand

Fisher & Paykel Healthcare Corporation Limited designs, manufactures and markets heated humidification products and systems for use in respiratory care and the treatment of sleep apnea.  The Company also offers patient warming and neonatal care products, including warming products and infant resuscitators.

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Fisher & Paykel Healthcare Cor (FPH AU)

Fisher & Paykel Healthcare: Initiation of Coverage- How Airvo 3 & Consumable Growth Fuel Explosive Revenue Potential!

Fisher & Paykel Healthcare's recent financial results for the fiscal year ending March 31, 2025, reveal a balanced mix of robust growth and...

Baptista Research

Cochlear Ltd (COH AU): Underlying Business Strength Justifies Superior Valuation

Cochlear lifted FY24 net profit guidance 8% to A$385–400M (+26–31% YoY). The company expects FY24 cochlear implant volume growth of 10–15% YoY from...

Tina Banerjee

S&P/NZX 50 Index Rebalance: Two High Impact Changes Coming Up

As expected, Gentrack and Turners Auto will replace Synlait Milk and Pacific Edge in the NZX50 Index. The adds have jumped recently and there...

Brian Freitas

Fisher & Paykel Healthcare's Healthy Hospital Sales Offset Dip in Mask Sale Momentum

Fisher & Paykel's first-half fiscal 2017 result was slightly below our expectations due largely to higher sales and marketing expenses as a...

Morningstar, Inc.

Beware Complacency Around Australian Small Cap REITs Risk Exposures

In this post, Evidente extends its systematic model of earnings certainty to Australian small caps. The out-performance from large caps with high...

Sam Ferraro

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