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

Resideo Technologies Inc / Equity Bottom-Up

<ul><li>Resideo Technologies, following the completion of its ADI Global Distribution spin-off in August 2026, reported second quarter consolidated revenue of nearly $2 billion, representing a 2% year-over-year increase and establishing a new quarterly record.</li><li>Adjusted EBITDA grew 19% to $249 million, and adjusted earnings per share rose 26% to $0.83 on a non-GAAP basis.</li><li>The company attributes strong performance to effective operational execution, tariff refunds primarily benefiting the ADI segment, and broad-based revenue growth across its Products & Solutions (P&S) segment despite soft macroeconomic conditions impacting the residential housing market.</li></ul>

Resideo Technologies, following the completion of its ADI Global Distribution spin-off in August 2026, reported second quarter consolidated revenue of nearly $2 billion, representing a 2% year-over-year increase and establishing a new quarterly record.Adjusted EBITDA grew 19% to $249 million, and adjusted earnings per share rose 26% to $0.83 on a non-GAAP basis.The company attributes strong performance to effective operational execution, tariff refunds primarily benefiting the ADI segment, and broad-based revenue growth across its Products & Solutions (P&S) segment despite soft macroeconomic conditions impacting the residential housing market.

Resideo Technologies' $900 Million Debt Paydown Unlocks Value After the ADI Spin-Off!

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

<ul><li>Resideo (REZI) is about to spin off its distribution business, ADI Global Distribution (ADIG), with regular-way trading set to begin August 4, 2026.</li><li>I’m recommending buying REZI ahead of the break-up for a few reasons.</li><li>It’s a classic de-merger arbitrage setup. Even in the worst case, where RemainCo trades at the cheapest multiple in its peer group (~10x 2027 EBITDA) and ADIG trades at the cheapest distributor multiple (6.2x), I still get ~3% upside from today’s price.</li></ul>

Resideo (REZI) is about to spin off its distribution business, ADI Global Distribution (ADIG), with regular-way trading set to begin August 4, 2026.I’m recommending buying REZI ahead of the break-up for a few reasons.It’s a classic de-merger arbitrage setup. Even in the worst case, where RemainCo trades at the cheapest multiple in its peer group (~10x 2027 EBITDA) and ADIG trades at the cheapest distributor multiple (6.2x), I still get ~3% upside from today’s price.

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Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Event-Driven

<ul>
<li>Resideo's Board approved the ADI Global Distribution spin-off; record date July 20, distribution August 3, with one ADI share for every two REZI shares. ADI trades regular-way August 4.</li>
<li>We value Resideo (ex ADI) at $35.00/share and ADI at $25.00/share, implying combined fair value of $47.50, 53% upside</li>
<li>Key risks: ADI's thin distribution margins face freight/fuel inflation, ~$1.0B new debt, and $23M standalone costs. Investor Days on July 13–14 are the near-term re-rating catalyst</li>
</ul>


Resideo's Board approved the ADI Global Distribution spin-off; record date July 20, distribution August 3, with one ADI share for every two REZI shares. ADI trades regular-way August 4.
We value Resideo (ex ADI) at $35.00/share and ADI at $25.00/share, implying combined fair value of $47.50, 53% upside
Key risks: ADI's thin distribution margins face freight/fuel inflation, ~$1.0B new debt, and $23M standalone costs. Investor Days on July 13–14 are the near-term re-rating catalyst


Resideo to Spin-Off ADI Global on August 3; Initiate Standalone Fair Value Estimates

<ul>
<li>Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)</li>
<li>ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.</li>
<li>Our SOTP valuation of $46.50 implies roughly 49% upside to REZI's current price, highlighting the potential for value unlock via the spin-off.</li>
</ul>


Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)
ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.
Our SOTP valuation of $46.50 implies roughly 49% upside to REZI's current price, highlighting the potential for value unlock via the spin-off.


Resideo/ADI Global Distribution Spin-Off: The Sum Is Worth More Than The Parts

<ul><li>Resideo Technologies, Inc. reported a strong set of results for both the fourth quarter and full year 2025, generally exceeding financial outlooks across key metrics and signaling a positive trajectory.</li><li>The results showed record highs in net revenue, adjusted EBITDA, and adjusted EPS, highlighting a successful year despite facing various global macroeconomic headwinds.</li><li>Resideo’s Products & Solutions segment saw commendable growth in 2025, with a 4% increase in organic net revenue year-over-year.</li></ul>

Resideo Technologies, Inc. reported a strong set of results for both the fourth quarter and full year 2025, generally exceeding financial outlooks across key metrics and signaling a positive trajectory.The results showed record highs in net revenue, adjusted EBITDA, and adjusted EPS, highlighting a successful year despite facing various global macroeconomic headwinds.Resideo’s Products & Solutions segment saw commendable growth in 2025, with a 4% increase in organic net revenue year-over-year.

Resideo Technologies’ Product Innovation Push—ElitePRO and Control4 X4 Signal a Smart Home Offensive!

United States

Resideo Technologies, Inc. provides home comfort and security solutions. The Company offers low voltage connected devices which delivers access to controls, monitoring, and alerts. Resideo Technologies serves customers worldwide.

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Resideo Technologies Inc (REZI US)

Resideo Technologies' $900 Million Debt Paydown Unlocks Value After the ADI Spin-Off!

Resideo Technologies, following the completion of its ADI Global Distribution spin-off in August 2026, reported second quarter consolidated...

Baptista Research

[Alert] Buy REZI

Resideo (REZI) is about to spin off its distribution business, ADI Global Distribution (ADIG), with regular-way trading set to begin August 4, 2026.

Richard Howe

Resideo to Spin-Off ADI Global on August 3; Initiate Standalone Fair Value Estimates

Resideo's Board approves ADI Global Distribution spin-off with record date July 20, distribution August 3. Value REZI (ex ADI) at $35.00 and ADI...

GSBR Research

Resideo/ADI Global Distribution Spin-Off: The Sum Is Worth More Than The Parts

Spin-off of ADI Global Distribution from Resideo Technologies creates opportunity for value unlock with SOTP valuation suggesting 49% upside...

GSBR Research

Resideo Technologies’ Product Innovation Push—ElitePRO and Control4 X4 Signal a Smart Home Offensive!

Resideo Technologies, Inc. reported a strong set of results for both the fourth quarter and full year 2025, generally exceeding financial outlooks...

Baptista Research

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Resideo Technologies' $900 Million Debt Paydown Unlocks Value After the ADI Spin-Off!

Resideo Technologies, following the completion of its ADI Global Distribution spin-off in August 2026, reported second quarter consolidated...

Baptista Research

[Alert] Buy REZI

Resideo (REZI) is about to spin off its distribution business, ADI Global Distribution (ADIG), with regular-way trading set to begin August 4, 2026.

Richard Howe

Resideo to Spin-Off ADI Global on August 3; Initiate Standalone Fair Value Estimates

​Resideo's Board approves ADI Global Distribution spin-off with record date July 20, distribution August 3. Value REZI (ex ADI) at $35.00 and ADI...

GSBR Research

Resideo/ADI Global Distribution Spin-Off: The Sum Is Worth More Than The Parts

​Spin-off of ADI Global Distribution from Resideo Technologies creates opportunity for value unlock with SOTP valuation suggesting 49% upside...

GSBR Research

Resideo Technologies’ Product Innovation Push—ElitePRO and Control4 X4 Signal a Smart Home Offensive!

Resideo Technologies, Inc. reported a strong set of results for both the fourth quarter and full year 2025, generally exceeding financial outlooks...

Baptista Research

Resideo's Board approves ADI Global Distribution spin-off with record date July 20, distribution August 3. Value REZI (ex ADI) at $35.00 and ADI...

Spin-off of ADI Global Distribution from Resideo Technologies creates opportunity for value unlock with SOTP valuation suggesting 49% upside...