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

Event-Driven

<ul><li>REZI is a situation I will be watching closely as the company approaches the planned 2026 spin-off of its distribution business.</li><li>The transaction will separate two fundamentally different businesses that were combined by Honeywell at the time of Resideo’s original spin-off—despite having little synergy.</li><li>On a sum-of-the-parts basis—which is particularly relevant given the impending separation—I see at least 16% upside.</li></ul>

REZI is a situation I will be watching closely as the company approaches the planned 2026 spin-off of its distribution business.The transaction will separate two fundamentally different businesses that were combined by Honeywell at the time of Resideo’s original spin-off—despite having little synergy.On a sum-of-the-parts basis—which is particularly relevant given the impending separation—I see at least 16% upside.

Resideo Technologies: Spin-off will Crystallize SOTP Value

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, Inc. reported its Q3 2025 financial results, showing a blend of accomplishments alongside some challenges.</li><li>The company delivered a solid performance in both its ADI Global Distribution and Products & Solutions segments, achieving low single-digit organic revenue growth, while also posting record high adjusted EBITDA and adjusted EPS, which exceeded expectations primarily due to terminating the Honeywell Indemnity agreement.</li><li>However, the company faced headwinds from macroeconomic factors such as inflation and tariffs.</li></ul>

Resideo Technologies, Inc. reported its Q3 2025 financial results, showing a blend of accomplishments alongside some challenges.The company delivered a solid performance in both its ADI Global Distribution and Products & Solutions segments, achieving low single-digit organic revenue growth, while also posting record high adjusted EBITDA and adjusted EPS, which exceeded expectations primarily due to terminating the Honeywell Indemnity agreement.However, the company faced headwinds from macroeconomic factors such as inflation and tariffs.

Resideo Delivers Strong Growth Despite Market Turbulence—Here’s What’s Driving It!

<ul><li>Resideo (REZI) completed the spin-off of its distribution business, ADI Global (ADIG), on 8/3/2026, with regular-way trading beginning 8/4/2026.</li><li>ADIG has had an interesting first month.</li><li>It traded up initially, helped by its addition to the S&amp;P SmallCap 600 effective with the first day of regular-way trading, reaching roughly $31. </li></ul>

Resideo (REZI) completed the spin-off of its distribution business, ADI Global (ADIG), on 8/3/2026, with regular-way trading beginning 8/4/2026.ADIG has had an interesting first month.It traded up initially, helped by its addition to the S&amp;P SmallCap 600 effective with the first day of regular-way trading, reaching roughly $31. 

<ul><li>The fall spin-off calendar is finally starting to fill in...</li><li>Two of the three names I am watching most closely now have dates.</li><li>Corteva (CTVA) is schedule to separate Vylor on 10/1/2026. KBR (KBR) has set 1/4/2027 for the spin-off of its government services business, Trinzic.</li></ul>

The fall spin-off calendar is finally starting to fill in...Two of the three names I am watching most closely now have dates.Corteva (CTVA) is schedule to separate Vylor on 10/1/2026. KBR (KBR) has set 1/4/2027 for the spin-off of its government services business, Trinzic.

<ul><li>Analysts almost always start high and walk it down. Since 2001, consensus S&amp;P 500 calendar-year EPS estimates have drifted about 4.0% lower over the course of a year.</li><li>This cycle is doing the opposite. Consensus 2026 estimates are up 15.9% from where they started and 2027 is already up 13.5%, close to a 20 point swing versus the historical path.</li><li>That is a supportive backdrop for more separations, and I expect boards to take advantage</li></ul>

Analysts almost always start high and walk it down. Since 2001, consensus S&amp;P 500 calendar-year EPS estimates have drifted about 4.0% lower over the course of a year.This cycle is doing the opposite. Consensus 2026 estimates are up 15.9% from where they started and 2027 is already up 13.5%, close to a 20 point swing versus the historical path.That is a supportive backdrop for more separations, and I expect boards to take advantage

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: Spin-off will Crystallize SOTP Value

REZI is a situation I will be watching closely as the company approaches the planned 2026 spin-off of its distribution business. The transaction...

Richard Howe

Resideo Delivers Strong Growth Despite Market Turbulence—Here’s What’s Driving It!

Resideo Technologies, Inc. reported its Q3 2025 financial results, showing a blend of accomplishments alongside some challenges. The company...

Baptista Research

ADI Global: $24 Now, $48 Later

Resideo (REZI) completed the spin-off of its distribution business, ADI Global (ADIG), on 8/3/2026, with regular-way trading beginning 8/4/2026.

Richard Howe

Weekly Update (Vylor, APTV, REZI)

The fall spin-off calendar is finally starting to fill in... Two of the three names I am watching most closely now have dates.

Richard Howe

Weekly Update (MSGS, MEDXF, REZI)

Analysts almost always start high and walk it down. Since 2001, consensus S&P 500 calendar-year EPS estimates have drifted about 4.0% lower over...

Richard Howe

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