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

Prestige Brands Holdings, Inc / Equity Bottom-Up

<ul><li>Prestige Consumer Healthcare has moved into the spotlight after agreeing to acquire Breathe Right and a portfolio of adjacent over-the-counter brands from Foundation Consumer Healthcare for $1.045 billion, or about $900 million net of anticipated tax benefits.</li><li>The transaction, announced in March 2026, would add roughly $200 million of revenue and about $95 million of EBITDA based on the twelve months ended December 31, 2025, with Breathe Right accounting for about two-thirds of the portfolio’s sales and profitability.</li><li>Management has framed the deal as consistent with its long-standing playbook: buying trusted, category-leading consumer health brands with durable cash flow, strong margins, and room for brand building.</li></ul>

Prestige Consumer Healthcare has moved into the spotlight after agreeing to acquire Breathe Right and a portfolio of adjacent over-the-counter brands from Foundation Consumer Healthcare for $1.045 billion, or about $900 million net of anticipated tax benefits.The transaction, announced in March 2026, would add roughly $200 million of revenue and about $95 million of EBITDA based on the twelve months ended December 31, 2025, with Breathe Right accounting for about two-thirds of the portfolio’s sales and profitability.Management has framed the deal as consistent with its long-standing playbook: buying trusted, category-leading consumer health brands with durable cash flow, strong margins, and room for brand building.

Prestige Healthcare Is Buying Breathe Right—Here’s Why It Could Pay Off Big!

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<div><ul><li>PBH reported 2QFY26 adjusted EPS of $1.07 versus $1.09 in 2QFY25, above our $0.97 estimate, which was also FactSet consensus.</li><li>Sales in the quarter declined 3.4% Y/Y to $274.1MM, above our $256.9MM estimate, as well as consensus of $257.1MM.</li><li>Management previously expected sales in the range of $256-259MM, so sales exceeded management’s original expectations as well. </li></ul></div>

PBH reported 2QFY26 adjusted EPS of $1.07 versus $1.09 in 2QFY25, above our $0.97 estimate, which was also FactSet consensus.Sales in the quarter declined 3.4% Y/Y to $274.1MM, above our $256.9MM estimate, as well as consensus of $257.1MM.Management previously expected sales in the range of $256-259MM, so sales exceeded management’s original expectations as well. 

PBH: Demand Pull-Forward Drives 2QFY26 Upside; Raising EPS Estimates Due to Strong Free Cash Flow

Thematic (Sector/Industry)

<ul><li>The WTR Consumer Index underperformed the S&amp;P SmallCap 600 in 2025, declining 10.6% versus an increase of 4.2% for the broader index. </li><li>The 4.6% increase in prospective earnings for our index was more than offset by a 2.6x contraction in its prospective P/E ratio to 15.5x from 18.1x at the beginning of the year.</li><li>Conversely, prospective earnings for the S&amp;P SmallCap 600 declined 2.5% in 2025, but that was more than offset by a 1.1x expansion of its prospective P/E ratio to 16.7x from 15.6x at the beginning of the year.</li></ul>

The WTR Consumer Index underperformed the S&amp;P SmallCap 600 in 2025, declining 10.6% versus an increase of 4.2% for the broader index. The 4.6% increase in prospective earnings for our index was more than offset by a 2.6x contraction in its prospective P/E ratio to 15.5x from 18.1x at the beginning of the year.Conversely, prospective earnings for the S&amp;P SmallCap 600 declined 2.5% in 2025, but that was more than offset by a 1.1x expansion of its prospective P/E ratio to 16.7x from 15.6x at the beginning of the year.

Consumer Monthly : WTR Consumer Index Lags Broader Market in 2025 - 12 January 2026

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

<ul>
<li>Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.</li>
<li>As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.</li>
<li>Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples</li>
</ul>


Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.
As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.
Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples


S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

<p>Now that the initial/primary low has been established and with the S&amp;P 500 roughly 20% off the lows, we believe it is time to map out potential areas where this rally could run into resistance. After this type of major waterfall decline there is often a test of the initial low - and there is often an undercut of the initial low. Barring approval of a first-line therapy for COVID-19 (chloroquine/hydroxychloroquine?) we are of the belief that a test of this initial low (likely 2-12 weeks out) and potentially an undercut of roughly 10% are likely.</p>

Now that the initial/primary low has been established and with the S&amp;P 500 roughly 20% off the lows, we believe it is time to map out potential areas where this rally could run into resistance. After this type of major waterfall decline there is often a test of the initial low - and there is often an undercut of the initial low. Barring approval of a first-line therapy for COVID-19 (chloroquine/hydroxychloroquine?) we are of the belief that a test of this initial low (likely 2-12 weeks out) and potentially an undercut of roughly 10% are likely.

United States

Prestige Brands Holdings, Inc. distributes over-the-counter healthcare and household cleaning products to retail stores in the United States, Canada and other international markets.  The Company distributes oral, eye and skin care; cough, cold, allergy and sinus; and household cleansers, sponges, scrubbers and cleaning pads.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Prestige Brands Holdings, Inc (PBH US)

Prestige Healthcare Is Buying Breathe Right—Here’s Why It Could Pay Off Big!

Prestige Consumer Healthcare has moved into the spotlight after agreeing to acquire Breathe Right and a portfolio of adjacent over-the-counter...

Baptista Research

PBH: Demand Pull-Forward Drives 2QFY26 Upside; Raising EPS Estimates Due to Strong Free Cash Flow

PBH reported 2QFY26 adjusted EPS of $1.07 versus $1.09 in 2QFY25, above our $0.97 estimate, which was also FactSet consensus.

Water Tower Research

Consumer Monthly : WTR Consumer Index Lags Broader Market in 2025 - 12 January 2026

The WTR Consumer Index underperformed the S&P SmallCap 600 in 2025, declining 10.6% versus an increase of 4.2% for the broader index.

Water Tower Research

S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

Last week (3/21) we discussed the potential for a 2-5% rally to the 1.5-month downtrend on the $SPX, or even the 4165-4200 range, which we noted...

Vermilion Research

U.S. Equities: Test Of The Lows Coming?

Now that the initial/primary low has been established and with the S&P 500 roughly 20% off the lows, we believe it is time to map out potential...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)