Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors.</li>
<li>In spite of certain narratives, rotation to value stocks has little to do with Visa's recent outperformance.</li>
<li>The impact of short-term headwinds will likely remain muted due to Visa's increased penetration in certain markets and new flow channels.</li>
</ul>


Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors.
In spite of certain narratives, rotation to value stocks has little to do with Visa's recent outperformance.
The impact of short-term headwinds will likely remain muted due to Visa's increased penetration in certain markets and new flow channels.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.</li>
<li>We have also covered the Oct 2020 placements in our earlier note, <a href="https://www.smartkarma.com/insights/zip-placement-sorry-it-s-not-you-it-s-me" target="_blank" data-smartkarma-citation="insights:44380" rel="noopener">Zip Placement - Sorry, It's Not You. It's Me</a>. </li>
<li>In this note we will talk about the recent developments and run the deal through our ECM framework.</li>
</ul>


ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.
We have also covered the Oct 2020 placements in our earlier note, Zip Placement - Sorry, It's Not You. It's Me. 
In this note we will talk about the recent developments and run the deal through our ECM framework.


ZIP Acquisition and Unlinked Placement - Too Many Things at Once

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.

<ul><li>PayPal's stock price has fallen significantly off-late but this is no reflection of its inherent financial performance.</li><li>The company had a very good performance in 2021 where its revenue increased by 18% to $25.4 billion and it saw a 19% bottom-line expansion.</li><li>We are optimistic about PayPal's growth and give it a ‘Buy’ rating with a revised target price.</li></ul>

PayPal's stock price has fallen significantly off-late but this is no reflection of its inherent financial performance.The company had a very good performance in 2021 where its revenue increased by 18% to $25.4 billion and it saw a 19% bottom-line expansion.We are optimistic about PayPal's growth and give it a ‘Buy’ rating with a revised target price.

PayPal Holdings: A No-Brainer Fintech Investment Today? (02/2022)

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>FY22 revenue guidance which was lowered in 3Q (from 20% to 18%) was lowered again (to 15-17%) and is below the company’s medium term targets it issued a year ago.  </li>
<li>FY22 EPS guidance was lowered to ~$4.60-4.75 (1.6% yoy at midpoint) vs. $5.24 consensus.</li>
<li>We think PYPL comes in at $5 and returns to 20% EPS growth in 2023, putting it a ~20x trough forward P/E multiple today.</li>
</ul>


FY22 revenue guidance which was lowered in 3Q (from 20% to 18%) was lowered again (to 15-17%) and is below the company’s medium term targets it issued a year ago.  
FY22 EPS guidance was lowered to ~$4.60-4.75 (1.6% yoy at midpoint) vs. $5.24 consensus.
We think PYPL comes in at $5 and returns to 20% EPS growth in 2023, putting it a ~20x trough forward P/E multiple today.


Paypal: Guess It Wasn’t Just a Pig Through a Python…But Is This a Compounder on Sale?

<ul><li>The two large fintech majors, PayPal and Block (formerly Square) have undergone a strong correction in the past month.</li><li>While there are many aspects of PayPal and Blocks' business that overlap but their financial performance and basic approach to business has been radically different.</li><li>The common factor has obviously been the phenomenal growth story of both companies, revolutionizing the fintech domain.</li></ul>

The two large fintech majors, PayPal and Block (formerly Square) have undergone a strong correction in the past month.While there are many aspects of PayPal and Blocks' business that overlap but their financial performance and basic approach to business has been radically different.The common factor has obviously been the phenomenal growth story of both companies, revolutionizing the fintech domain.

PayPal vs. Block (Square) - Which Fintech Major Is Looking More Financially Solid (12/2021)

United States

PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. The Company offers online payment solutions. PayPal Holdings serves customers worldwide.

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Paypal Holdings (PYPL US)

Visa: Don't Mind The Disruptors

Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors. In spite of certain narratives,...

Vladimir Dimitrov, CFA

ZIP Acquisition and Unlinked Placement - Too Many Things at Once

ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a...

Sumeet Singh

PayPal Holdings: A No-Brainer Fintech Investment Today? (02/2022)

PayPal's stock price has fallen significantly off-late but this is no reflection of its inherent financial performance. The company had a very...

Baptista Research

Paypal: Guess It Wasn’t Just a Pig Through a Python…But Is This a Compounder on Sale?

Once Paypal works its way through the tough comps, the narrative for 2H22 of reaccelerating growth will put it back in the hearts of GARP...

Aaron Gabin

PayPal vs. Block (Square) - Which Fintech Major Is Looking More Financially Solid (12/2021)

The two large fintech majors, PayPal and Block (formerly Square) have undergone a strong correction in the past month. While there are many...

Baptista Research

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