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>Ulta Beauty recently presented its fiscal second-quarter results for 2024, reflecting mixed financial health and strategic endeavors aimed at navigating ongoing market challenges.</li><li>The company reported a slight increase in net sales by 0.9% to $2.6 billion, though comparable sales declined by 1.2%.</li><li>Notably, operating profit margin stood at 12.9% of sales, indicating efficiency in operations despite revenue hurdles, with a diluted earnings per share of $5.30.</li></ul>

Ulta Beauty recently presented its fiscal second-quarter results for 2024, reflecting mixed financial health and strategic endeavors aimed at navigating ongoing market challenges.The company reported a slight increase in net sales by 0.9% to $2.6 billion, though comparable sales declined by 1.2%.Notably, operating profit margin stood at 12.9% of sales, indicating efficiency in operations despite revenue hurdles, with a diluted earnings per share of $5.30.

Ulta Beauty Inc.: Expansion of Product Assortment and Brand Partnerships & Other Major Drivers

AI and Global Deep Tech, Mint Finance

Uttkarsh Kohli

AI and Global Deep Tech

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Thematic (Sector/Industry)

<ul>
<li>Vanguard’s 95.3% reduction in TSMC holdings underscores concerns over geopolitical tensions and supply chain risks impacting the semiconductor sector’s stability and future growth. </li>
<li>Citadel’s 876% increase in Thermo Fisher shares reflects strong confidence in the healthcare sector, particularly in companies poised to benefit from technological advancements and market expansion. </li>
<li>Berkshire Hathaway’s 49.3% cut in Apple holdings suggests a strategic move to lock in profits after significant gains, while reallocating capital to less volatile investments.</li>
</ul>


Vanguard’s 95.3% reduction in TSMC holdings underscores concerns over geopolitical tensions and supply chain risks impacting the semiconductor sector’s stability and future growth. 
Citadel’s 876% increase in Thermo Fisher shares reflects strong confidence in the healthcare sector, particularly in companies poised to benefit from technological advancements and market expansion. 
Berkshire Hathaway’s 49.3% cut in Apple holdings suggests a strategic move to lock in profits after significant gains, while reallocating capital to less volatile investments.


Institutions Adjust Portfolios Amid Economic Uncertainty and Market Volatility (13F Filings 30/Jun)

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Oddity Tech, owner of famous global brands IL MAKIAGE and SpoiledChild, is growing slower than in 2022 and 2023. The overall growth will slow down to ~20% y/y in 2025.</li>
<li>According to my estimates and SEC filings, private equity firm L Catterton, the largest shareholder, reduced its stake in Oddity Tech to 18.4%, down from ~42% prior to an IPO.</li>
<li>I see ~34% downside risk in Oddity Tech stock as growth will slow down and the company will launch new brands only in the second half of 2025.</li>
</ul>


Oddity Tech, owner of famous global brands IL MAKIAGE and SpoiledChild, is growing slower than in 2022 and 2023. The overall growth will slow down to ~20% y/y in 2025.
According to my estimates and SEC filings, private equity firm L Catterton, the largest shareholder, reduced its stake in Oddity Tech to 18.4%, down from ~42% prior to an IPO.
I see ~34% downside risk in Oddity Tech stock as growth will slow down and the company will launch new brands only in the second half of 2025.


Oddity Tech: ~34% Downside Risk As Growth Will Slow Down

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>In this insight, we discuss how Warren Buffett's recent investment in Ulta Beauty is likely to have a positive impact on CJ Corp's valuation. </li>
<li>CJ Olive Young (largest shareholder is CJ Corp) is the dominant health &amp; beauty cosmetics chain in Korea. CJ Olive Young has a similar business model to Ulta Beauty.</li>
<li>Our NAV analysis suggests an implied market cap of 4.7 trillion won or implied price of 160,977 won per share for CJ Corp, representing a 38% upside from current levels.</li>
</ul>


In this insight, we discuss how Warren Buffett's recent investment in Ulta Beauty is likely to have a positive impact on CJ Corp's valuation. 
CJ Olive Young (largest shareholder is CJ Corp) is the dominant health &amp; beauty cosmetics chain in Korea. CJ Olive Young has a similar business model to Ulta Beauty.
Our NAV analysis suggests an implied market cap of 4.7 trillion won or implied price of 160,977 won per share for CJ Corp, representing a 38% upside from current levels.


Warren Buffett Invests in Ulta Beauty - Positive Impact on CJ Corp?

<ul><li>The latest earnings of Ulta Beauty show that in Q1 2024, the company reported a 3.5% rise in net sales to $2.7 billion, and 1.6% growth in comp sales.</li><li>Also, the diluted earnings per share were $6.47.</li><li>However, amid a rapidly shifting marketplace, the company has adjusted its expectations for the rest of the year.</li></ul>

The latest earnings of Ulta Beauty show that in Q1 2024, the company reported a 3.5% rise in net sales to $2.7 billion, and 1.6% growth in comp sales.Also, the diluted earnings per share were $6.47.However, amid a rapidly shifting marketplace, the company has adjusted its expectations for the rest of the year.

Ulta Beauty Inc.: What Results Will The Gross Margin Management Efforts Yield In 2024

United States

Ulta Beauty, Inc. operates a chain of beauty stores. The Company offers cosmetics, fragrance, skin, and hair care products, as well as salon services. Ulta Beauty serves customers throughout the United States.

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Ulta Beauty (ULTA US)

Ulta Beauty Inc.: Expansion of Product Assortment and Brand Partnerships & Other Major Drivers

Ulta Beauty recently presented its fiscal second-quarter results for 2024, reflecting mixed financial health and strategic endeavors aimed at...

Baptista Research

Institutions Adjust Portfolios Amid Economic Uncertainty and Market Volatility (13F Filings 30/Jun)

Investors are moving away from overvalued tech stocks towards undervalued sectors like infrastructure and healthcare due to increasing economic...

Mint Finance

Oddity Tech: ~34% Downside Risk As Growth Will Slow Down

I see ~34% downside risk in Oddity Tech stock, reflecting lower peer multiples, heavy insider selling and continued slowdown in the beauty industry

Andrei Zakharov

Warren Buffett Invests in Ulta Beauty - Positive Impact on CJ Corp?

In this insight, we discuss how Warren Buffett's recent investment in Ulta Beauty is likely to have a positive impact on CJ Corp's valuation.

Douglas Kim

Ulta Beauty Inc.: What Results Will The Gross Margin Management Efforts Yield In 2024

The latest earnings of Ulta Beauty show that in Q1 2024, the company reported a 3.5% rise in net sales to $2.7 billion, and 1.6% growth in comp...

Baptista Research

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