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>McKesson managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.</li><li>In the second quarter, they reported a 10% increase in revenues to $77.2 billion, with adjusted earnings per diluted share reaching $6.23.</li><li>The Distribution business showcased robust growth in the US Pharmaceutical segment, consistently achieving double-digit revenue increases over the past ten quarters.</li></ul>

McKesson managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.In the second quarter, they reported a 10% increase in revenues to $77.2 billion, with adjusted earnings per diluted share reaching $6.23.The Distribution business showcased robust growth in the US Pharmaceutical segment, consistently achieving double-digit revenue increases over the past ten quarters.

McKesson Corporation: How Their Biopharma Platform is Redefining Industry Standards! - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Waystar Holding will be valued like other unprofitable healthcare IT unicorns on a multiple of forward revenue. I used EV/Revenue valuation methodology and FY23 EV/Revenue multiples to value the Waystar. </li>
<li>In 2019, CPPIB and EQT acquired a majority stake in Waystar, valuing the company at $2.7B, which implies an EV/FY23E revenue multiple of ~ 6x, including a debt of ~$2.3B. </li>
<li>My ~$3.6B IPO valuation contemplates a ~5x EV/Revenue on my FY23E revenue of $795M and is supported by my analysis of healthcare IT comps. </li>
</ul>


Waystar Holding will be valued like other unprofitable healthcare IT unicorns on a multiple of forward revenue. I used EV/Revenue valuation methodology and FY23 EV/Revenue multiples to value the Waystar. 
In 2019, CPPIB and EQT acquired a majority stake in Waystar, valuing the company at $2.7B, which implies an EV/FY23E revenue multiple of ~ 6x, including a debt of ~$2.3B. 
My ~$3.6B IPO valuation contemplates a ~5x EV/Revenue on my FY23E revenue of $795M and is supported by my analysis of healthcare IT comps. 


Waystar IPO Valuation Analysis: Lack of Bullish Catalysts and Weak Post-Listing Performance

<ul>
<li>Waystar Holding, a cloud-based technology company and healthcare RCM solution provider, filed for a $100M placeholder IPO.</li>
<li>Founded in 2017 through the merger of two healthcare firms, ZirMed and Navicure, Waystar Holding provides mission-critical cloud software to healthcare organizations in the United States. </li>
<li>The company has ~$2.3B of outstanding borrowings and plans to use net proceeds from an upcoming IPO to repay outstanding indebtedness under credit facilities. </li>
</ul>


Waystar Holding, a cloud-based technology company and healthcare RCM solution provider, filed for a $100M placeholder IPO.
Founded in 2017 through the merger of two healthcare firms, ZirMed and Navicure, Waystar Holding provides mission-critical cloud software to healthcare organizations in the United States. 
The company has ~$2.3B of outstanding borrowings and plans to use net proceeds from an upcoming IPO to repay outstanding indebtedness under credit facilities. 


Waystar IPO Preview: Debt-Fueled Expansion Through M&A Deals In A High-Interest Rate Environment

<ul><li>McKesson Corporation managed to exceed analyst expectations in terms of revenue as well as earnings.</li><li>McKesson's core distribution businesses, particularly pharmaceutical distribution, exhibited broad-based momentum with solid growth across customer channels.</li><li>We give McKesson Corporation a 'Hold' rating with a revised target price.</li></ul>

McKesson Corporation managed to exceed analyst expectations in terms of revenue as well as earnings.McKesson's core distribution businesses, particularly pharmaceutical distribution, exhibited broad-based momentum with solid growth across customer channels.We give McKesson Corporation a 'Hold' rating with a revised target price.

McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! - Major Drivers

<ul><li>McKesson managed an all-around beat in the last quarter, closing out a solid fiscal 2023 with full-year revenues of $277 billion and adjusted earnings per diluted share of $25.94.</li><li>The core Pharmaceutical Distribution business supported growth in the U.S.</li><li>Pharmaceutical segment, and they divested their European operations to streamline their portfolio.</li></ul>

McKesson managed an all-around beat in the last quarter, closing out a solid fiscal 2023 with full-year revenues of $277 billion and adjusted earnings per diluted share of $25.94.The core Pharmaceutical Distribution business supported growth in the U.S.Pharmaceutical segment, and they divested their European operations to streamline their portfolio.

McKesson Corporation: A Streamlined Portfolio After Recent Divestitures – Key Drivers

United States

McKesson Corporation distributes pharmaceuticals, medical-surgical supplies, and health and beauty care products throughout North America. The Company also develops, implements, and supports software that facilitates the integration of data throughout the health enterprise.  In addition, McKesson offers analytic, care management, and patient solutions for payers.

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Mckesson Corp (MCK US)

McKesson Corporation: How Their Biopharma Platform is Redefining Industry Standards! - Major Drivers

McKesson managed to exceed the revenue expectations as well as the earnings expectations of Wall Street. In the second quarter, they reported a...

Baptista Research

Waystar IPO Valuation Analysis: Lack of Bullish Catalysts and Weak Post-Listing Performance

In my insight, I will focus on the IPO valuation of Waystar Holding, a healthcare IT unicorn and provider of mission-critical cloud software to...

Andrei Zakharov

Waystar IPO Preview: Debt-Fueled Expansion Through M&A Deals In A High-Interest Rate Environment

Waystar Holding IPO looks risky in a high-interest rate environment, given the company’s debt-fueled expansion through a series of M&A deals.

Andrei Zakharov

McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! - Major Drivers

McKesson Corporation managed to exceed analyst expectations in terms of revenue as well as earnings. McKesson's core distribution businesses,...

Baptista Research

McKesson Corporation: A Streamlined Portfolio After Recent Divestitures – Key Drivers

McKesson managed an all-around beat in the last quarter, closing out a solid fiscal 2023 with full-year revenues of $277 billion and adjusted...

Baptista Research

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