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>Sprout Social, a prominent provider in the social media management software sector, reported its First Quarter 2024 financial results and announced significant shifts in leadership and operational strategy designed to better position the company for future growth.</li><li>Despite the ambitious long-term vision articulated by incoming CEO Ryan Barretto, the quarter itself was met with challenges that resulted in failure to meet revenue targets.</li><li>While the company achieved a revenue of $96.8 million, representing a 29% year-over-year growth, it fell short of its own expectations.</li></ul>

Sprout Social, a prominent provider in the social media management software sector, reported its First Quarter 2024 financial results and announced significant shifts in leadership and operational strategy designed to better position the company for future growth.Despite the ambitious long-term vision articulated by incoming CEO Ryan Barretto, the quarter itself was met with challenges that resulted in failure to meet revenue targets.While the company achieved a revenue of $96.8 million, representing a 29% year-over-year growth, it fell short of its own expectations.

Sprout Social Inc.: Does The Crash After Its Denial Of Exploring A Sale Process Imply A Buying Opportunity? - Major Drivers

<ul><li>This is our first report on web-based social media management solution provider, Sprout Social.</li><li>In its most recent quarter, a comprehensive social media management software company, delivered positive Q3 results reflecting good progress in meeting their objectives.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on web-based social media management solution provider, Sprout Social.In its most recent quarter, a comprehensive social media management software company, delivered positive Q3 results reflecting good progress in meeting their objectives.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Sprout Social: Initiation of Coverage - AI Revolution in Social Media! Sneak Peek into Their Groundbreaking 2024 Features! - Major Drivers

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bigtincan-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29067:1" rel="noopener">Bigtincan Holdings Ltd (BTH AU)</a> disclosed a non-binding indicative offer of A$0.80 per share offer from SQN, a skinny 17.6% premium to the undisturbed price.</li>
<li>The offer is unattractive on several fronts and is the latest beaten-down ASX tech stock to be subject to a PE bid. Expect the Board to reject the offer.</li>
<li>Bigtincan also revealed other non-binding expressions of interest. This offer could flush out other potential bidders. At the last close, the gross spread is 6.0%.</li>
</ul>



Bigtincan Holdings Ltd (BTH AU) disclosed a non-binding indicative offer of A$0.80 per share offer from SQN, a skinny 17.6% premium to the undisturbed price.
The offer is unattractive on several fronts and is the latest beaten-down ASX tech stock to be subject to a PE bid. Expect the Board to reject the offer.
Bigtincan also revealed other non-binding expressions of interest. This offer could flush out other potential bidders. At the last close, the gross spread is 6.0%.


Bigtincan (BTH AU)’s Lightweight A$0.80 Offer from SQN

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

Our base case continues to be for near-term consolidation while the market determines the implications of states’ reopening (i.e., the “wait-and-see” phase). Until this consolidation period resolves below support or above resistance we are maintaining a relatively neutral stance considering the wide range of outcomes. Many major indexes are testing logical resistance and until we see breakouts it is hard to get too bullish. In this report we highlight attractive stocks from a RS perspective.

Our base case continues to be for near-term consolidation while the market determines the implications of states’ reopening (i.e., the “wait-and-see” phase). Until this consolidation period resolves below support or above resistance we are maintaining a relatively neutral stance considering the wide range of outcomes. Many major indexes are testing logical resistance and until we see breakouts it is hard to get too bullish. In this report we highlight attractive stocks from a RS perspective.

U.S. Equity Strategy: Round Trip Back To Resistance

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Sprout Social Inc / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sprout-social-inc" target="_blank" data-smartkarma-citation="entities:28394:1" rel="noopener">Sprout Social, Inc. (SPT US)</a> is ready to complete its IPO in the U.S. in the next few days. The IPO price range is between $16 to $18 per share and the company is offering 8.82 million Class A shares. At the high end of the IPO price range, the company could raise up to $159 million.</li>
<li>Our base case valuation of Sprout Social is $21.60, which is 27% higher than the mid-point of the IPO valuation range of $16 to $18 per share. As such, we are bullish on this IPO. </li>
<li>Our base case valuation of $1.0 billion in market cap assumes a P/S multiple of 7.9x using our estimated sales of $130.7 million in 2020. This represents a 40% discount to the comps based on 2020 P/S, which we believe to be conservative. </li>
</ul>



Sprout Social, Inc. (SPT US) is ready to complete its IPO in the U.S. in the next few days. The IPO price range is between $16 to $18 per share and the company is offering 8.82 million Class A shares. At the high end of the IPO price range, the company could raise up to $159 million.
Our base case valuation of Sprout Social is $21.60, which is 27% higher than the mid-point of the IPO valuation range of $16 to $18 per share. As such, we are bullish on this IPO. 
Our base case valuation of $1.0 billion in market cap assumes a P/S multiple of 7.9x using our estimated sales of $130.7 million in 2020. This represents a 40% discount to the comps based on 2020 P/S, which we believe to be conservative. 


United States

Sprout Social, Inc. provides online social media management tools for businesses. The Company offers communication tools, contact management, and lead generation, as well as reporting and analytics services. Sprout Social serves customers worldwide.

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Sprout Social Inc (SPT US)

Bigtincan (BTH AU)’s Lightweight A$0.80 Offer from SQN

Expect the Board to reject the offer as it is light. The indicative offer could spark other interested parties to show their hand. We would be...

Arun George

U.S. Equity Strategy: Round Trip Back To Resistance

Our base case continues to be for near-term consolidation while the market determines the implications of states’ reopening (i.e., the...

Vermilion Research

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Sprout Social Inc.: Does The Crash After Its Denial Of Exploring A Sale Process Imply A Buying Opportunity? - Major Drivers

Sprout Social, a prominent provider in the social media management software sector, reported its First Quarter 2024 financial results and...

Baptista Research

Sprout Social: Initiation of Coverage - AI Revolution in Social Media! Sneak Peek into Their Groundbreaking 2024 Features! - Major Drivers

This is our first report on web-based social media management solution provider, Sprout Social. In its most recent quarter, a comprehensive social...

Baptista Research

Bigtincan (BTH AU)’s Lightweight A$0.80 Offer from SQN

Expect the Board to reject the offer as it is light. The indicative offer could spark other interested parties to show their hand. We would be...

Arun George

U.S. Equity Strategy: Round Trip Back To Resistance

Our base case continues to be for near-term consolidation while the market determines the implications of states’ reopening (i.e., the...

Vermilion Research

Sprout Social Valuation Analysis

Sprout Social, Inc. (SPT US) is ready to complete its IPO in the U.S. in the next few days. The IPO price range is between $16 to $18 per share...

Douglas Kim