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

Tyson Foods Inc Cl A / Equity Capital Markets

<ul><li>Tyson Foods saw a good financial performance in the last quarter with sales increasing by about 24% in the first quarter, owing largely to its pricing initiatives to combat inflationary pressures.</li><li>One of the biggest positive takeaways from its recent earnings announcement was the management expectation of the total company volumes increasing by 2-3% in this year, outpacing growth in protein consumption.</li><li>We are neutral in our views on Tyson Foods and give it a 'Hold' rating at current levels, with a revised target price.</li></ul>

Tyson Foods saw a good financial performance in the last quarter with sales increasing by about 24% in the first quarter, owing largely to its pricing initiatives to combat inflationary pressures.One of the biggest positive takeaways from its recent earnings announcement was the management expectation of the total company volumes increasing by 2-3% in this year, outpacing growth in protein consumption.We are neutral in our views on Tyson Foods and give it a 'Hold' rating at current levels, with a revised target price.

US/Europe Event-Driven Analyst

John DeMasi

Event-Driven

<ul>
<li>Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.</li>
<li>Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.</li>
<li>Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.</li>
</ul>


Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.
Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.
Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.


Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

<ul><li>Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein.</li><li>In addition, the company has clear initiatives to reduce complexity in its plant, reduce transportation and handling, and reduce waste.</li><li>Given their recent performance, we are optimistic about Tyson Foods and believe it deserves a 'Hold' rating at current levels.</li></ul>

Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein.In addition, the company has clear initiatives to reduce complexity in its plant, reduce transportation and handling, and reduce waste.Given their recent performance, we are optimistic about Tyson Foods and believe it deserves a 'Hold' rating at current levels.

Tyson Foods: How Is The Company Handling The Price-Volume Mix Situation? (12/2021)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

The shares of <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> to be returned to shareholders after the Buyback Offer have been returned to shareholders as of this morning. Some appeared to have sold yesterday, some today, and some may not "get notice" of the return until tonight, which means they would sell tomorrow or later. Now we look ahead. Based on a pure price-vs-peers basis, the price today is about 3% below where it was compared to a mix of Chinese and global peers as of the day before the announcement. However, that does not include the 15% accretion to EPS from the buyback. That puts the stock a fair bit cheaper than its peer basket since the announcement 3+ months ago. And it has ALWAYS traded cheap on governance concerns (and one reason why showed up last month in a public spat between the spurned first son and the chairman, discussed in <a href="https://www.smartkarma.com/insights/wh-group-stock-plummets-as-ousted-son-drags-pigs-into-the-mud" target="_blank" data-smartkarma-citation="insights:56282" rel="noopener">WH Group - Stock Plummets as Ousted Son Drags Pigs Into The Mud</a>. The question investors should ask themselves is.... if the family were ousted, would that be good for the share price? If the answer is yes, then the exposure here probably has some convexity given the shares trade at a multi-year low to Peers on an accretion-adjusted basis.

The shares of WH Group (288 HK) to be returned to shareholders after the Buyback Offer have been returned to shareholders as of this morning. Some appeared to have sold yesterday, some today, and some may not "get notice" of the return until tonight, which means they would sell tomorrow or later. Now we look ahead. Based on a pure price-vs-peers basis, the price today is about 3% below where it was compared to a mix of Chinese and global peers as of the day before the announcement. However, that does not include the 15% accretion to EPS from the buyback. That puts the stock a fair bit cheaper than its peer basket since the announcement 3+ months ago. And it has ALWAYS traded cheap on governance concerns (and one reason why showed up last month in a public spat between the spurned first son and the chairman, discussed in WH Group - Stock Plummets as Ousted Son Drags Pigs Into The Mud. The question investors should ask themselves is.... if the family were ousted, would that be good for the share price? If the answer is yes, then the exposure here probably has some convexity given the shares trade at a multi-year low to Peers on an accretion-adjusted basis.

<ul>
<li>Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat demand across the country.</li>
<li>Volumes were not a problem in the quarter with rising demand from foodservice.</li>
<li>Additionally, in this recent quarter, the management continued to build financial strength by using higher operating cash flow to reduce debt.</li>
</ul>


Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat demand across the country.
Volumes were not a problem in the quarter with rising demand from foodservice.
Additionally, in this recent quarter, the management continued to build financial strength by using higher operating cash flow to reduce debt.


United States

Tyson Foods, Inc. produces, distributes, and markets chicken, beef, pork, prepared foods and related allied products.  The Company's products are marketed and sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies.

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Tyson Foods Inc Cl A (TSN US)

Tyson Foods: Financial & Price Forecasts

Tyson Foods saw a good financial performance in the last quarter with sales increasing by about 24% in the first quarter, owing largely to its...

Baptista Research

Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

Chicken on Sale! Sanderson Farms trades at much lower multiples than peers and has a pending takeover which could close within months. Even if the...

John DeMasi

Tyson Foods: How Is The Company Handling The Price-Volume Mix Situation? (12/2021)

Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein. In addition, the company...

Baptista Research

WH Group Post-Tender Outlook

Buyback Offer shares are returned. Now we look forward. Of course, we did before in assuming participation rates. The stock is cheap on accretion...

Travis Lundy

Tyson Foods Inc. - Investment Thesis

Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat...

Baptista Research

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