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>PayPal Holdings Inc. has demonstrated a sound performance in the first quarter of 2025, indicating positive momentum in its strategic execution and financial outcomes.</li><li>The company’s ongoing transformation from a traditional payments processor to a comprehensive commerce platform appears to be progressing effectively.</li><li>This is underscored by the company’s fifth consecutive quarter of profitable growth, highlighted by an 8% growth in transaction margin dollars when adjusted for leap year considerations.</li></ul>

PayPal Holdings Inc. has demonstrated a sound performance in the first quarter of 2025, indicating positive momentum in its strategic execution and financial outcomes.The company’s ongoing transformation from a traditional payments processor to a comprehensive commerce platform appears to be progressing effectively.This is underscored by the company’s fifth consecutive quarter of profitable growth, highlighted by an 8% growth in transaction margin dollars when adjusted for leap year considerations.

PayPal Holdings: Product & Geographic Diversification To Upsurge Global Transaction Footprint Amid Competition & Geopolitical Changes!

<ul><li>PayPal delivered robust operating and financial results for the full year and fourth quarter of 2024, marked by strategic initiatives aimed at transformation and growth.</li><li>The company's efforts to enhance its branded checkout, person-to-person (P2P) payments, and Venmo monetization showed positive impacts on its financial metrics.</li><li>One of PayPal's significant achievements in 2024 was its ability to drive year-long growth in transaction margin dollars, aided by innovations in branded checkout and a focus on pricing-to-value.</li></ul>

PayPal delivered robust operating and financial results for the full year and fourth quarter of 2024, marked by strategic initiatives aimed at transformation and growth.The company's efforts to enhance its branded checkout, person-to-person (P2P) payments, and Venmo monetization showed positive impacts on its financial metrics.One of PayPal's significant achievements in 2024 was its ability to drive year-long growth in transaction margin dollars, aided by innovations in branded checkout and a focus on pricing-to-value.

PayPal Holdings: The Braintree Breakout – How This Unit Is Quietly Gaining Ground!

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>Our key picks for 1H 2026 are driven by fundamental valuations, margin and growth prospects; top of our buy list is Nexi, with PagSeguro in second place</li>
<li>Our key sell is Affirm; the increasingly competitive BNPL market is a potential “banana skin” for its premium growth forecasts, coupled with potentially worsening consumer credit delinquency</li>
<li>Klarna is one to watch in 1H 2026, but it is not there yet; the share price’s underwhelming performance post-IPO reflects the competitive BNPL market, especially in the US</li>
</ul>


Our key picks for 1H 2026 are driven by fundamental valuations, margin and growth prospects; top of our buy list is Nexi, with PagSeguro in second place
Our key sell is Affirm; the increasingly competitive BNPL market is a potential “banana skin” for its premium growth forecasts, coupled with potentially worsening consumer credit delinquency
Klarna is one to watch in 1H 2026, but it is not there yet; the share price’s underwhelming performance post-IPO reflects the competitive BNPL market, especially in the US


Payment Companies – Our 2026 High Conviction Ideas

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Klarna Group had a successful IPO in September, but shares were volatile in October and November along with Affirm Holdings and other BNPL market players.</li>
<li>A Swedish first mover in the BNPL space went public at $40.00 per share, raising ~$169M of net proceeds. Selling shareholders offloaded ~$1.2B worth of Klarna Group shares.  </li>
<li>Klarna Group reported record results in 3Q as a public company, surpassing analyst expectations. However, net loss widened to $95M and provisions for credit losses jumped.</li>
</ul>


Klarna Group had a successful IPO in September, but shares were volatile in October and November along with Affirm Holdings and other BNPL market players.
A Swedish first mover in the BNPL space went public at $40.00 per share, raising ~$169M of net proceeds. Selling shareholders offloaded ~$1.2B worth of Klarna Group shares.  
Klarna Group reported record results in 3Q as a public company, surpassing analyst expectations. However, net loss widened to $95M and provisions for credit losses jumped.


Klarna Group (NYSE: KLAR): 3Q’25 Quarterly Update, 4Q Guidance Trajectory Looks Strong

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>Pine Labs raised around US$450m in its India IPO. Overall demand was weak.</li>
<li>Pine Labs (PL) is a fintech firm focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.</li>
<li>We have looked at the past performance in our previous note. In this note, we talk about the trading dynamics.</li>
</ul>


Pine Labs raised around US$450m in its India IPO. Overall demand was weak.
Pine Labs (PL) is a fintech firm focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.
We have looked at the past performance in our previous note. In this note, we talk about the trading dynamics.


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)

PayPal Holdings: Product & Geographic Diversification To Upsurge Global Transaction Footprint Amid Competition & Geopolitical Changes!

PayPal Holdings Inc. has demonstrated a sound performance in the first quarter of 2025, indicating positive momentum in its strategic execution...

Baptista Research

PayPal Holdings: The Braintree Breakout – How This Unit Is Quietly Gaining Ground!

PayPal delivered robust operating and financial results for the full year and fourth quarter of 2024, marked by strategic initiatives aimed at...

Baptista Research

Payment Companies – Our 2026 High Conviction Ideas

Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...

Victor Galliano

Klarna Group (NYSE: KLAR): 3Q’25 Quarterly Update, 4Q Guidance Trajectory Looks Strong

Klarna Group shares continue to trade below IPO offer price of $40.00 per share. The Swedish BNPL giant reported record results in 3Q as a public...

Andrei Zakharov

Pine Labs IPO Trading - Low/No Demand

Pine Labs raised around US$450m in its India IPO. Overall demand was weak. In this note we talk about the trading dynamics.

Sumeet Singh

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PayPal Holdings: Product & Geographic Diversification To Upsurge Global Transaction Footprint Amid Competition & Geopolitical Changes!

PayPal Holdings Inc. has demonstrated a sound performance in the first quarter of 2025, indicating positive momentum in its strategic execution...

Baptista Research

PayPal Holdings: The Braintree Breakout – How This Unit Is Quietly Gaining Ground!

PayPal delivered robust operating and financial results for the full year and fourth quarter of 2024, marked by strategic initiatives aimed at...

Baptista Research

Payment Companies – Our 2026 High Conviction Ideas

​Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...

Victor Galliano

Klarna Group (NYSE: KLAR): 3Q’25 Quarterly Update, 4Q Guidance Trajectory Looks Strong

​Klarna Group shares continue to trade below IPO offer price of $40.00 per share. The Swedish BNPL giant reported record results in 3Q as a public...

Andrei Zakharov

Pine Labs IPO Trading - Low/No Demand

Pine Labs raised around US$450m in its India IPO. Overall demand was weak. In this note we talk about the trading dynamics.

Sumeet Singh

Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...

Klarna Group shares continue to trade below IPO offer price of $40.00 per share. The Swedish BNPL giant reported record results in 3Q as a public...