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>Macy's Inc continues to survive in a challenging macro environment with its big silver lining being the Polaris transformation strategy.</li><li>The company’s business has changed dramatically since they started laying the groundwork for their Polaris strategy in 2019.</li><li>While story closures, low margins amidst and inflationary environment, and stifled growth challenges remain, the Polaris strategy is helping the management build a stronger, digitally-led retail business as the external environment continues to change.</li></ul>

Macy's Inc continues to survive in a challenging macro environment with its big silver lining being the Polaris transformation strategy.The company’s business has changed dramatically since they started laying the groundwork for their Polaris strategy in 2019.While story closures, low margins amidst and inflationary environment, and stifled growth challenges remain, the Polaris strategy is helping the management build a stronger, digitally-led retail business as the external environment continues to change.

<ul><li>Macy's delivered another strong quarter, exceeding management's expectations in terms of both, the top and bottom line, outperforming both 2020 and 2019.</li><li>The company’s performance has been driven by strong sales of luxury handbags, home, fine jewelry, and men's shoes in contemporary apparel.</li><li>During the quarter, Macy's saw a 16% increase in average customer spend in the Platinum, Gold, and Silver tiers compared to the third quarter of 2019.</li></ul>

Macy's delivered another strong quarter, exceeding management's expectations in terms of both, the top and bottom line, outperforming both 2020 and 2019.The company’s performance has been driven by strong sales of luxury handbags, home, fine jewelry, and men's shoes in contemporary apparel.During the quarter, Macy's saw a 16% increase in average customer spend in the Platinum, Gold, and Silver tiers compared to the third quarter of 2019.

Macy's: How Long Will The Polaris Strategy Continue To Pay Off? (12/2021)

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Factset Research Systems Inc / Event-Driven

<ul>
<li>There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.</li>
<li>The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.</li>
<li>There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.</li>
</ul>


There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.
The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.
There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.


S&P500 Index Rebalance: Migrations Across the Indices

<ul><li>Macy's delivered a solid set of results for Q2 demonstrating the power of an omnichannel model with a robust offering of brands, categories, and price points.</li><li>Its total sales increased 5.9%, an approximately 16 percentage point trend improvement as compared to the 10% decrease in the first quarter of 2021.</li><li>In this report, we have carried out reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.</li></ul>

Macy's delivered a solid set of results for Q2 demonstrating the power of an omnichannel model with a robust offering of brands, categories, and price points.Its total sales increased 5.9%, an approximately 16 percentage point trend improvement as compared to the 10% decrease in the first quarter of 2021.In this report, we have carried out reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.

<ul><li>Macy’s has gained strong momentum over the past few weeks and has reached the target price from our previous report after the increased footfalls resulting from all the Covid-19 restrictions being lifted in many American states.</li><li>There has been a marked increase in consumer spending in malls and apparel outlets setting Macy’s up for a solid result ahead.</li><li>The company has made a remarkable turnaround from its pandemic lows and is seeing customers coming back to its departmental stores.</li></ul>

Macy’s has gained strong momentum over the past few weeks and has reached the target price from our previous report after the increased footfalls resulting from all the Covid-19 restrictions being lifted in many American states.There has been a marked increase in consumer spending in malls and apparel outlets setting Macy’s up for a solid result ahead.The company has made a remarkable turnaround from its pandemic lows and is seeing customers coming back to its departmental stores.

United States

Macy's, Inc. operates department stores in the United States.  The Company also operates direct mail catalog and electronic commerce subsidiaries. Macy's retail stores sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

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Macy's Inc (M US)

Macy's Inc: Financial & Price Forecasts

Macy's Inc continues to survive in a challenging macro environment with its big silver lining being the Polaris transformation strategy. The...

Baptista Research

Macy's: How Long Will The Polaris Strategy Continue To Pay Off? (12/2021)

Macy's delivered another strong quarter, exceeding management's expectations in terms of both, the top and bottom line, outperforming both 2020...

Baptista Research

S&P500 Index Rebalance: Migrations Across the Indices

There are 3 migrations from the S&P400 to the S&P500 and vice versa and another 3 migrations from the S&P600 to the S&400 and vice versa. The one...

Brian Freitas

Macy's Inc. - Investment Thesis

Macy's delivered a solid set of results for Q2 demonstrating the power of an omnichannel model with a robust offering of brands, categories, and...

Baptista Research

Macy's Inc. - Invt Thesis

Macy’s has gained strong momentum over the past few weeks and has reached the target price from our previous report after the increased footfalls...

Baptista Research

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