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>Foot Locker delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.</li><li>The company remained optimistic about the back half of the year, with several key launches and brand collaborations planned.</li><li>Despite challenges, Foot Locker continues to focus on its omni-connected retail experience, with plans to open new prototype stores next year.</li></ul>

Foot Locker delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.The company remained optimistic about the back half of the year, with several key launches and brand collaborations planned.Despite challenges, Foot Locker continues to focus on its omni-connected retail experience, with plans to open new prototype stores next year.

Foot Locker Inc.: Decoding Its Expansion Strategies! – Key Drivers

President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

Shenzhou Intl Group Holdings / Equity Bottom-Up

<ul>
<li>Key customers &amp; their retail partners battling excess inventory, waning consumer demand, and market share losses in certain geographies</li>
<li>Plans for capacity expansion amid demand uncertainties and alt data and macro picture may prove aggressive and along with risks of reshoring/nearshoring &amp; friend-shoring may prove margin dilutive</li>
<li>Consensus expectations for 2H23 and 2024 appear overly optimistic and valuation is not cheap given the growth profile</li>
</ul>


Key customers &amp; their retail partners battling excess inventory, waning consumer demand, and market share losses in certain geographies
Plans for capacity expansion amid demand uncertainties and alt data and macro picture may prove aggressive and along with risks of reshoring/nearshoring &amp; friend-shoring may prove margin dilutive
Consensus expectations for 2H23 and 2024 appear overly optimistic and valuation is not cheap given the growth profile


Shenzhou (2313 HK): Contract Mfr for Leading Sportswear Brands Facing Challenging Demand Outlook.

<ul><li>Despite operating in a turbulent market, including inflationary pressure on the consumer around the world, Foot Locker generated better-than-expected results and managed to surpass Wall Street expectations on all fronts.</li><li>Due to strong brand consistency across the board and successful back-to-school marketing initiatives, Kids Foot Locker had mid-single-digit growth.</li><li>Additionally, Foot Locker extended its partnership with Puma to connect with next-generation consumers through exclusive basketball and other high-end partnerships.</li></ul>

Despite operating in a turbulent market, including inflationary pressure on the consumer around the world, Foot Locker generated better-than-expected results and managed to surpass Wall Street expectations on all fronts.Due to strong brand consistency across the board and successful back-to-school marketing initiatives, Kids Foot Locker had mid-single-digit growth.Additionally, Foot Locker extended its partnership with Puma to connect with next-generation consumers through exclusive basketball and other high-end partnerships.

Foot Locker Inc: Extended Partnership With Puma & Other Drivers

<ul><li>Foot Locker has been working hard to reduce its dependence on Nike and offer a broader set offerings over its channels categories and brands that have been yielding positive results.</li><li>The partnership of Foot Locker with Puma continues to drive heat in the basketball categories as MB.01 remains the best-selling shoe in the company.</li><li>It now has the brand worldwide in 95 doors, and it continues to grow its presence of the brand with robust results.</li></ul>

Foot Locker has been working hard to reduce its dependence on Nike and offer a broader set offerings over its channels categories and brands that have been yielding positive results.The partnership of Foot Locker with Puma continues to drive heat in the basketball categories as MB.01 remains the best-selling shoe in the company.It now has the brand worldwide in 95 doors, and it continues to grow its presence of the brand with robust results.

Foot Locker Inc: Partnership With Adidas & Other Drivers

Equity Capital Markets

<ul><li>Like most of its footwear retail peers, Foot Locker also faced severe supply chain challenges throughout 2021.</li><li>The macro trends have been working in favor of Foot Locker given the post-pandemic recovery of physical retail.</li><li>We give Foot Locker a ‘Hold’ rating with a revised target price.</li></ul>

Like most of its footwear retail peers, Foot Locker also faced severe supply chain challenges throughout 2021.The macro trends have been working in favor of Foot Locker given the post-pandemic recovery of physical retail.We give Foot Locker a ‘Hold’ rating with a revised target price.

Foot Locker Inc.: Financial & Price Forecasts

United States

Foot Locker, Inc. is primarily a mall-based athletic retailer that operates athletic retail stores in countries located in North America, Europe, and Australia.  The Company provides athletic footwear and apparel through its Foot Locker, Lady Foot Locker, Kids Foot Locker, and Champs Sports retail stores. Foot Locker also operates a direct-to-consumer channel, Footlocker.com/Eastbay.

Foot Locker Inc (FL US)

Foot Locker Inc.: Decoding Its Expansion Strategies! – Key Drivers

Foot Locker delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street. The...

Baptista Research

Shenzhou (2313 HK): Contract Mfr for Leading Sportswear Brands Facing Challenging Demand Outlook.

Consensus estimates do not account for customer, retailer, Asian market share shift, macro, alt data and geopolitical risks.

Robert C Prather Jr

Foot Locker Inc: Extended Partnership With Puma & Other Drivers

Despite operating in a turbulent market, including inflationary pressure on the consumer around the world, Foot Locker generated...

Baptista Research

Foot Locker Inc: Partnership With Adidas & Other Drivers

Foot Locker has been working hard to reduce its dependence on Nike and offer a broader set offerings over its channels categories and brands that...

Baptista Research

Foot Locker Inc.: Financial & Price Forecasts

Like most of its footwear retail peers, Foot Locker also faced severe supply chain challenges throughout 2021. The macro trends have been working...

Baptista Research