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>Omnicom Group Inc.'s first quarter 2024 earnings demonstrated the media communications company's strong position within the industry along with some areas of concerns.</li><li>The company's solid start to 2024 can be attributed to an organic growth of 4% in Q1, fueled largely by robust growth in advertising and media and precision marketing disciplines.</li><li>The EBITA margin, excluding the amortization of acquired and strategic platform intangibles, reached 13.8% for the quarter, and non-GAAP adjusted EPS rose to $1.67, up 3.7% from Q1 2023.</li></ul>

Omnicom Group Inc.'s first quarter 2024 earnings demonstrated the media communications company's strong position within the industry along with some areas of concerns.The company's solid start to 2024 can be attributed to an organic growth of 4% in Q1, fueled largely by robust growth in advertising and media and precision marketing disciplines.The EBITA margin, excluding the amortization of acquired and strategic platform intangibles, reached 13.8% for the quarter, and non-GAAP adjusted EPS rose to $1.67, up 3.7% from Q1 2023.

Omnicom Group: Can It Truly Maximize The Potential Of AI To Catalyze Its Growth? - Major Drivers

<ul><li>Omnicom Group has achieved its 2023 goals despite a difficult macroeconomic environment, setting a solid foundation to enter 2024 from a position of strength.</li><li>Notably, the company generated a free cash flow of approximately $1.9 billion in 2023 and returned $1.1 billion to shareholders through dividends and share repurchases.</li><li>The M&A activity including the acquisition of Flywheel Digital, the largest one in Omnicom's history, is especially promising for the future growth of the company.</li></ul>

Omnicom Group has achieved its 2023 goals despite a difficult macroeconomic environment, setting a solid foundation to enter 2024 from a position of strength.Notably, the company generated a free cash flow of approximately $1.9 billion in 2023 and returned $1.1 billion to shareholders through dividends and share repurchases.The M&A activity including the acquisition of Flywheel Digital, the largest one in Omnicom's history, is especially promising for the future growth of the company.

Omnicom Group: A Strong Positioning with Transformation in the Client Landscape! - Major Drivers

<ul><li>Omnicom Group delivered an all-around beat in the previous quarter, with a 3.3% organic growth.</li><li>The results are on track to achieve the full-year organic growth target of 3.5% to 5% and the operating margin target of 15% to 15.4%.</li><li>New business wins, including Omnicom Media Group securing global media business for Uber and HSBC, showcase continued growth.</li></ul>

Omnicom Group delivered an all-around beat in the previous quarter, with a 3.3% organic growth.The results are on track to achieve the full-year organic growth target of 3.5% to 5% and the operating margin target of 15% to 15.4%.New business wins, including Omnicom Media Group securing global media business for Uber and HSBC, showcase continued growth.

Omnicom Group: Can The Acquisition Of Flywheel Catalyze Future Growth? - Major Drivers

<ul><li>Omnicom Group delivered a mixed set of results for the previous quarter, with revenues below analyst expectations but managed earnings beat.</li><li>Organic growth for the quarter was impressive and the company's liquidity is strong while its cash flow supports its principal cash uses, including dividends, purchases, and share repurchases.</li><li>Omnicom made considerable headway on its AI strategy by incorporating generative AI into Omni, their market-leading technology platform, and forming important first-of-their-kind technological partnerships.</li></ul>

Omnicom Group delivered a mixed set of results for the previous quarter, with revenues below analyst expectations but managed earnings beat.Organic growth for the quarter was impressive and the company's liquidity is strong while its cash flow supports its principal cash uses, including dividends, purchases, and share repurchases.Omnicom made considerable headway on its AI strategy by incorporating generative AI into Omni, their market-leading technology platform, and forming important first-of-their-kind technological partnerships.

Omnicom Group Inc.: Acquisition of Grabarz & Partner

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>Since January 2023 we have anticipated 4165-4200 would cap upside on the S&amp;P 500 for 2023, but that a rally to 4300-4325 is also possible; this remains our view.</li>
<li>So far there has not been much traction above 4200. Obvious problem is weak breadth, but this does not <em>have to</em> end badly if large-caps pause, and capital disperses elsewhere</li>
<li>To that end, we're watching the Russell 2000 (IWM) which is testing 2.5-month resistance at $180; a break above resistance would signal improving breadth and would be a positive development</li>
</ul>


Since January 2023 we have anticipated 4165-4200 would cap upside on the S&amp;P 500 for 2023, but that a rally to 4300-4325 is also possible; this remains our view.
So far there has not been much traction above 4200. Obvious problem is weak breadth, but this does not have to end badly if large-caps pause, and capital disperses elsewhere
To that end, we're watching the Russell 2000 (IWM) which is testing 2.5-month resistance at $180; a break above resistance would signal improving breadth and would be a positive development


Russell 2000 (IWM) Testing $180 Resistance; Rising Treasury Yields & DXY To Become a Problem?

United States

Omnicom Group Inc. provides advertising, marketing and corporate communications services. The Company's agencies, which operate in major markets around the world, provide a comprehensive range of services including traditional media advertising; customer relationship management ("CRM"); public relations; and specialty communications.

Omnicom Group (OMC US)

Omnicom Group: Can It Truly Maximize The Potential Of AI To Catalyze Its Growth? - Major Drivers

Omnicom Group Inc.'s first quarter 2024 earnings demonstrated the media communications company's strong position within the industry along with...

Baptista Research

Omnicom Group: A Strong Positioning with Transformation in the Client Landscape! - Major Drivers

Omnicom Group has achieved its 2023 goals despite a difficult macroeconomic environment, setting a solid foundation to enter 2024 from a position...

Baptista Research

Omnicom Group: Can The Acquisition Of Flywheel Catalyze Future Growth? - Major Drivers

Omnicom Group delivered an all-around beat in the previous quarter, with a 3.3% organic growth. The results are on track to achieve the full-year...

Baptista Research

Omnicom Group Inc.: Acquisition of Grabarz & Partner

Omnicom Group delivered a mixed set of results for the previous quarter, with revenues below analyst expectations but managed earnings...

Baptista Research

Russell 2000 (IWM) Testing $180 Resistance; Rising Treasury Yields & DXY To Become a Problem?

So far there has been little traction above $SPX 4200. Weak breadth remains an obvious problem. We are watching the $IWM which is testing $180; a...

Vermilion Research