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

Lowe's Companies Inc / Equity Capital Markets

<ul><li>Home improvement retail has been one of the few sectors that benefitted heavily from the pandemic and continued to show positive growth in 2021 as well, even after the lockdown restrictions were lifted.</li><li>Despite the increasing concerns associated with the new Omicron variant, home improvement majors, Home Depot and Lowe's are both having a highly positive outlook for the coming year.</li><li>They are both battling the inflation and supply chain issues and have emerged successfully by delivering a string of exceptionally good results.</li></ul>

Home improvement retail has been one of the few sectors that benefitted heavily from the pandemic and continued to show positive growth in 2021 as well, even after the lockdown restrictions were lifted.Despite the increasing concerns associated with the new Omicron variant, home improvement majors, Home Depot and Lowe's are both having a highly positive outlook for the coming year.They are both battling the inflation and supply chain issues and have emerged successfully by delivering a string of exceptionally good results.

Home Depot vs. Lowe's Companies - A Comparative Analysis Of The Home Improvement Majors (12/2021)

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (CHL HK)</a> is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.</li>
<li>At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. </li>
<li>However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  </li>
</ul>



Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.
At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. 
However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  


Chervon Holdings IPO Initiation: Not Quite Right

<ul><li>Lowes saw solid momentum in the third quarter as comparable sales grew by 2.2% across the globe despite having a phenomenal 2020.</li><li>The company’s comps were up 2.6% for the U.S. alone on top of over 30% growth compared to 2020.</li><li>Besides, their expanded product assortment across their home decor offerings has resonated with customers, resulting in a particularly strong performance in appliances and flooring and contributing to an 11% increase in tickets over $500.</li></ul>

Lowes saw solid momentum in the third quarter as comparable sales grew by 2.2% across the globe despite having a phenomenal 2020.The company’s comps were up 2.6% for the U.S. alone on top of over 30% growth compared to 2020.Besides, their expanded product assortment across their home decor offerings has resonated with customers, resulting in a particularly strong performance in appliances and flooring and contributing to an 11% increase in tickets over $500.

Lowe’s Companies Inc.: Can It Sustain The New Highs? (12/2021)

<ul><li>Home improvement giant, Lowe’s saw another set of strong results benefiting from the outstanding execution of the management’s Total Home strategy.</li><li>The company witnessed a strong growth in the part of the business catering to home improvement professionals and installation experts.</li><li>The management’s focus on driving productivity resulted in a higher gross margin despite the inflationary pressures which is a very positive sign.</li></ul>

Home improvement giant, Lowe’s saw another set of strong results benefiting from the outstanding execution of the management’s Total Home strategy.The company witnessed a strong growth in the part of the business catering to home improvement professionals and installation experts.The management’s focus on driving productivity resulted in a higher gross margin despite the inflationary pressures which is a very positive sign.

Lowe's Companies Inc. - Investment Thesis

US/Europe Event-Driven Analyst

John DeMasi

Event-Driven

<a href="https://www.smartkarma.com/entities/ferguson-plc" target="_blank" data-smartkarma-citation="entities:28304:1" rel="noopener">Ferguson PLC (FERG LN)</a> is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal year ended July 31, 2019, the UK accounted for only about 10.2% of revenues and about 4% of trading profits, with the balance coming mainly from the USA, and to a much smaller extent, from Canada.Despite the Company’s predominant focus in the USA, it has traditionally traded at the more modest multiples of British distributors. On June 13, 2019, U.S. activist investment firm Trian Fund Management announced it had acquired a 5.98% position in FERG LN though affiliates including T1F LN, then worth approximately £736 million.Trian stated it believes Ferguson is an attractive business that trades at a discount to comparable U.S. peers. It also said it looks forward to working with Ferguson’s management to explore and implement initiatives that it believes can create long-term shareholder value.This research piece looks, from an event-driven point of view, at Ferguson’s business, valuation and potential catalyst to address any undervaluation.

Ferguson PLC (FERG LN) is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal year ended July 31, 2019, the UK accounted for only about 10.2% of revenues and about 4% of trading profits, with the balance coming mainly from the USA, and to a much smaller extent, from Canada.Despite the Company’s predominant focus in the USA, it has traditionally traded at the more modest multiples of British distributors. On June 13, 2019, U.S. activist investment firm Trian Fund Management announced it had acquired a 5.98% position in FERG LN though affiliates including T1F LN, then worth approximately £736 million.Trian stated it believes Ferguson is an attractive business that trades at a discount to comparable U.S. peers. It also said it looks forward to working with Ferguson’s management to explore and implement initiatives that it believes can create long-term shareholder value.This research piece looks, from an event-driven point of view, at Ferguson’s business, valuation and potential catalyst to address any undervaluation.

Ferguson Plc (FERG LN) – Plumbing for Value

United States

Lowe's Companies, Inc. is a home improvement retailer that distributes building materials and supplies through stores in the United States. The Company offers a complete line of products and services for home decorating, maintenance, repair, remodeling, and property maintenance.

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Lowe's Companies Inc (LOW US)

Home Depot vs. Lowe's Companies - A Comparative Analysis Of The Home Improvement Majors (12/2021)

Home improvement retail has been one of the few sectors that benefitted heavily from the pandemic and continued to show positive growth in 2021 as...

Baptista Research

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

Lowe’s Companies Inc.: Can It Sustain The New Highs? (12/2021)

Lowes saw solid momentum in the third quarter as comparable sales grew by 2.2% across the globe despite having a phenomenal 2020. The company’s...

Baptista Research

Lowe's Companies Inc. - Investment Thesis

Home improvement giant, Lowe’s saw another set of strong results benefiting from the outstanding execution of the management’s Total Home...

Baptista Research

Ferguson Plc (FERG LN) – Plumbing for Value

Ferguson PLC (FERG LN) is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal...

John DeMasi

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