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>GXO, a global leader in logistics and supply chain solutions, recently disclosed its financial results for the second quarter of 2024, presenting an optimistic outlook bolstered by substantial business developments.</li><li>Despite some regional fluctuations, the company's performance indicates robust strategic execution, with significant new business wins and advances in technology integration playing a key role in its growth trajectory.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

GXO, a global leader in logistics and supply chain solutions, recently disclosed its financial results for the second quarter of 2024, presenting an optimistic outlook bolstered by substantial business developments.Despite some regional fluctuations, the company's performance indicates robust strategic execution, with significant new business wins and advances in technology integration playing a key role in its growth trajectory.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

GXO Logistics Inc. Initiation Of Coverage - 4 Reasons We Are Bullish! - Major Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>GXO's spin-off from XPO Logistics is seen as a bold and potentially beneficial move</li><li>The company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trends</li><li>With a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investors</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.

GXO's spin-off from XPO Logistics is seen as a bold and potentially beneficial moveThe company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trendsWith a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investorsThis 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.

Gxo Logistic Inc (GXO) - Friday, May 10, 2024

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The trade of being short <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a> vs Nikkei 225 or Sector Basket is fundamentally slightly short Nikkei 225 froth.</li>
<li>
<a href="https://www.smartkarma.com/entities/giordano-international-ltd" target="_blank" data-smartkarma-citation="entities:13899:1" rel="noopener">Giordano (709 HK)</a>'s SGM will likely pivot off how the shareholders under Halcyon Securities vote. Digging a little deeper as to who these shareholders are, provides some (not-altogether) surprising results.</li>
<li>
<a href="https://www.smartkarma.com/entities/az-com-maruwa-holdings" target="_blank" data-smartkarma-citation="entities:17280:1" rel="noopener">AZ-Com Maruwa Holdings (9090 JP)</a> intends to launch a Tender Offer on <a href="https://www.smartkarma.com/entities/chilled-frozen-logistics-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40987:1" rel="noopener">Chilled &amp; Frozen Logistics Holdings (9099 JP)</a> without having contacted C&amp;F first. A HOSTILE deal. Yum!</li>
</ul>


The trade of being short Fast Retailing (9983 JP) vs Nikkei 225 or Sector Basket is fundamentally slightly short Nikkei 225 froth.

Giordano (709 HK)'s SGM will likely pivot off how the shareholders under Halcyon Securities vote. Digging a little deeper as to who these shareholders are, provides some (not-altogether) surprising results.

AZ-Com Maruwa Holdings (9090 JP) intends to launch a Tender Offer on Chilled &amp; Frozen Logistics Holdings (9099 JP) without having contacted C&amp;F first. A HOSTILE deal. Yum!


Last Week in Event SPACE: Fast Retailing, Giordano, C&F Logistics, Swire, Japan's Big Dividend

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gxo-logistics-inc" target="_blank" data-smartkarma-citation="entities:35654:1" rel="noopener">GXO Logistics (GXO US)</a> offers 605p for <a href="https://www.smartkarma.com/entities/wincanton-plc" target="_blank" data-smartkarma-citation="entities:23839:1" rel="noopener">Wincanton PLC (WIN LN)</a>, in a strategic move worth a 104% premium, 8.6x EV/25e EBITDA, 18.2 Fwd P/E (IBES), via scheme with 34% irrevocables.</li>
<li>Regulators are used to monitoring this industry, gradually consolidating on a worldwide scale as a result of cost pressures. GXO has smaller scale in the UK. </li>
<li>I don't think antitrust issues are going to prevent this transaction. Interloper risk is minimal (DHL, Deutsche Post would have regulatory issues). Spread is 1.00%/7.14% (gross/annualised). Long.</li>
</ul>



GXO Logistics (GXO US) offers 605p for Wincanton PLC (WIN LN), in a strategic move worth a 104% premium, 8.6x EV/25e EBITDA, 18.2 Fwd P/E (IBES), via scheme with 34% irrevocables.
Regulators are used to monitoring this industry, gradually consolidating on a worldwide scale as a result of cost pressures. GXO has smaller scale in the UK. 
I don't think antitrust issues are going to prevent this transaction. Interloper risk is minimal (DHL, Deutsche Post would have regulatory issues). Spread is 1.00%/7.14% (gross/annualised). Long.


<ul>
<li>Consideration is 690p + 0.0359 new GXO shares, an implied equity value of £961 million. Multiples are 12.8x EV/Fwd EBITDA (vs. a median 11.3x for comparable M&amp;A transactions) and 33.3x Fwd P/E.</li>
<li>My TP for Clipper is 857p (DCF, WACC 9.5%, 9.0x 5y EBITDA exit, 1% perpetuity growth rate). The offer price seems fair, with 40% of synergies accruing to Clipper shareholders. </li>
<li>This is a friendly deal with a compelling 49% premium. Considering GXO's M&amp;A experience, the merger should be successful. The spread (as of 28 February closing share prices) is 2.7%.</li>
</ul>


Consideration is 690p + 0.0359 new GXO shares, an implied equity value of £961 million. Multiples are 12.8x EV/Fwd EBITDA (vs. a median 11.3x for comparable M&amp;A transactions) and 33.3x Fwd P/E.
My TP for Clipper is 857p (DCF, WACC 9.5%, 9.0x 5y EBITDA exit, 1% perpetuity growth rate). The offer price seems fair, with 40% of synergies accruing to Clipper shareholders. 
This is a friendly deal with a compelling 49% premium. Considering GXO's M&amp;A experience, the merger should be successful. The spread (as of 28 February closing share prices) is 2.7%.


GXO Logistics/Clipper Logistics: Recommended Cash & Stock Offer

United States

GXO Logistics, Inc. operates as a contract logistics provider. The Company solves complex logistics challenges for its blue-chip customers with technologically advanced supply chain solutions, at scale, with speed. GXO Logistics serves clients worldwide.

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GXO Logistics (GXO US)

GXO Logistics Inc. Initiation Of Coverage - 4 Reasons We Are Bullish! - Major Drivers

GXO, a global leader in logistics and supply chain solutions, recently disclosed its financial results for the second quarter of 2024, presenting...

Baptista Research

Gxo Logistic Inc (GXO) - Friday, May 10, 2024

Azalea wrote up GXO Logistics (“GXO”) in June of 2023 with a very comprehensive and well written overview of the business model and industry.

Value Investors Club (VIC)

Last Week in Event SPACE: Fast Retailing, Giordano, C&F Logistics, Swire, Japan's Big Dividend

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

GXO/Wincanton: Scheme Document

GXO Logistics offers 605p for Wincanton PLC, a strategic move with a 104% premium and minimal antitrust concerns, amidst industry consolidation.

Jesus Rodriguez Aguilar

GXO Logistics/Clipper Logistics: Recommended Cash & Stock Offer

This is a friendly offer with a compelling premium, likely to close. Considering GXO's deal experience, the merger should be successful. Gross...

Jesus Rodriguez Aguilar

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GXO Logistics Inc. Initiation Of Coverage - 4 Reasons We Are Bullish! - Major Drivers

GXO, a global leader in logistics and supply chain solutions, recently disclosed its financial results for the second quarter of 2024, presenting...

Baptista Research

Gxo Logistic Inc (GXO) - Friday, May 10, 2024

Azalea wrote up GXO Logistics (“GXO”) in June of 2023 with a very comprehensive and well written overview of the business model and industry.

Value Investors Club (VIC)

Last Week in Event SPACE: Fast Retailing, Giordano, C&F Logistics, Swire, Japan's Big Dividend

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

GXO/Wincanton: Scheme Document

​GXO Logistics offers 605p for Wincanton PLC, a strategic move with a 104% premium and minimal antitrust concerns, amidst industry consolidation.

Jesus Rodriguez Aguilar

GXO Logistics/Clipper Logistics: Recommended Cash & Stock Offer

This is a friendly offer with a compelling premium, likely to close. Considering GXO's deal experience, the merger should be successful. Gross...

Jesus Rodriguez Aguilar

GXO Logistics offers 605p for Wincanton PLC, a strategic move with a 104% premium and minimal antitrust concerns, amidst industry consolidation.