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 Capital Markets

Ringcentral Inc Class A / Equity Capital Markets

<ul><li>RingCentral achieved good results in Q2 and delivered an all-around beat despite being impacted by the current macro climate.</li><li>Its direct business and partners helped the company deliver an all-around beat.</li><li>In Q2, RingCentral Rooms improved with brand-new seamless interfaces with hardware partners, including Avocor, Jabra, and EPOS.</li></ul>

RingCentral achieved good results in Q2 and delivered an all-around beat despite being impacted by the current macro climate.Its direct business and partners helped the company deliver an all-around beat.In Q2, RingCentral Rooms improved with brand-new seamless interfaces with hardware partners, including Avocor, Jabra, and EPOS.

RingCentral Inc: New Features For Remote Working Environment & Other Drivers

Equity Bottom-Up

Ringcentral Inc Class A / Equity Bottom-Up

<ul>
<li>This is our first report on UCaaS player, RingCentral.</li>
<li>The company started off with 2022 reasonably well with solid revenue growth and expansion in both free cash flow and operating margins.</li>
<li>Currently, it is the only company that offers a fully integrated solution that combines UCaaS and CCaaS on one bill.</li>
</ul>


This is our first report on UCaaS player, RingCentral.
The company started off with 2022 reasonably well with solid revenue growth and expansion in both free cash flow and operating margins.
Currently, it is the only company that offers a fully integrated solution that combines UCaaS and CCaaS on one bill.


RingCentral Inc.: Initiation of Coverage – Education Oriented Products

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div><p><a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a> provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development.</p></div><div><p>Tuya has priced its IPO at $21.00 per ADS to raise gross proceeds of $915 million, above the previous IPO price range of $17-20 per ADS, according to Bloomberg. At the final IPO price of $21 per share, Tuya will have a market cap of $11.8 billion. The IPO got off to a strong start due to indications of interest for $500 million worth of ADSs in the offering from existing investors (<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and Hillhouse Capital) and new investors (Canada Pension Plan Investment Board, Dragoneer Investment Group, GIC and Tiger Global Management).</p></div><div><p>In <a href="https://www.smartkarma.com/insights/tuya-ipo-initiation-connected-future" target="_blank" data-smartkarma-citation="insights:48695" rel="noopener">Tuya IPO Initiation: Connected Future</a>, we opined that Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. We concluded that Tuya’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/tuya-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:49137" rel="noopener">Tuya IPO: Valuation Insights</a> we noted that the IPO price range is reasonable but full at the high-end. </p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of $20.65 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis points to a meaningful upside based on securing a modest share of the addressable market. </p></div></div></div>

Tuya Inc (TUYA US) provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development.Tuya has priced its IPO at $21.00 per ADS to raise gross proceeds of $915 million, above the previous IPO price range of $17-20 per ADS, according to Bloomberg. At the final IPO price of $21 per share, Tuya will have a market cap of $11.8 billion. The IPO got off to a strong start due to indications of interest for $500 million worth of ADSs in the offering from existing investors (Tencent Holdings (700 HK) and Hillhouse Capital) and new investors (Canada Pension Plan Investment Board, Dragoneer Investment Group, GIC and Tiger Global Management).In Tuya IPO Initiation: Connected Future, we opined that Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. We concluded that Tuya’s fundamentals are attractive. In Tuya IPO: Valuation Insights we noted that the IPO price range is reasonable but full at the high-end. Updating for the final IPO net raise, our base-case DCF derived price target of $20.65 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis points to a meaningful upside based on securing a modest share of the addressable market. 

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.

Slack Technologies Inc / Equity Bottom-Up

<div><p>Slack had more then doubled off the March lows, running from $17 to $40 into the print on Thursday, presumably because it was like Zoom, Crowdstrike, Docusign, and other perceived software work from home winners. Its not.</p></div><div><div><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div></div></div>

Slack had more then doubled off the March lows, running from $17 to $40 into the print on Thursday, presumably because it was like Zoom, Crowdstrike, Docusign, and other perceived software work from home winners. Its not.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

<div>
<p>15!</p>
<p>That was the number of times Microsoft Teams was mentioned on Slack’s 4Q20 earnings call. This quarter saw a billings beat, which was likely due to the signing of Uber and expansion at IBM. Whats seemingly helped Slack during the past few weeks corona-virus mayhem is the thought that Slack was a mini-Zoom, a potential beneficiary of work. That doesn’t seem to be the case... </p>
</div><div><div><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div></div></div>


15!
That was the number of times Microsoft Teams was mentioned on Slack’s 4Q20 earnings call. This quarter saw a billings beat, which was likely due to the signing of Uber and expansion at IBM. Whats seemingly helped Slack during the past few weeks corona-virus mayhem is the thought that Slack was a mini-Zoom, a potential beneficiary of work. That doesn’t seem to be the case... 
Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Slack in the Guidance: 4Q20 Earnings Review

United States

RingCentral, Inc. is a provider of software-as-a-service, or SaaS, solutions for business communications. The Company offers a multi-user, enterprise-grade communications solution that enables customers and their employees to communicate via voice, text, HD video and web conferencing and fax, on multiple devices, including smartphones, tablets, PCs and desk phones.

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Ringcentral Inc Class A (RNG US)

RingCentral Inc: New Features For Remote Working Environment & Other Drivers

RingCentral achieved good results in Q2 and delivered an all-around beat despite being impacted by the current macro climate. Its direct business...

Baptista Research

RingCentral Inc.: Initiation of Coverage – Education Oriented Products

This is our first report on UCaaS player, RingCentral. The company started off with 2022 reasonably well with solid revenue growth and expansion...

Baptista Research

Tuya IPO: Trading Debut

Tuya has priced its IPO at $21 per ADS above the marketed range of $17-20 per ADS. Our sensitivity analysis points to a meaningful upside based on...

Arun George

Slack: Not Working (From Home)

Slack had more then doubled off the March lows, running from $17 to $40 into the print on Thursday, presumably because it was like Zoom,...

Aaron Gabin

Slack in the Guidance: 4Q20 Earnings Review

15! That was the number of times Microsoft Teams was mentioned on Slack’s 4Q20 earnings call. This quarter saw a billings beat, which was likely...

Aaron Gabin

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