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>Universal Display delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.</li><li>While the company experienced a decline in revenue compared to the previous year, it remained confident about the long-term growth potential of OLEDs.</li><li>UDC acknowledged the automotive industry's adoption of OLED displays due to their response rate, power consumption, and design advantages.</li></ul>

Universal Display delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.While the company experienced a decline in revenue compared to the previous year, it remained confident about the long-term growth potential of OLEDs.UDC acknowledged the automotive industry's adoption of OLED displays due to their response rate, power consumption, and design advantages.

Universal Display Corporation: Acquisition of Merck KGaA & Other Drivers

<ul><li>This is our first report on Universal Display Corporation, one of the largest players in the domain of OLED technologies and materials for use in display and solid-state lighting applications.</li><li>The management anticipates that the OLED market will continue on its long-term growth trajectory.</li><li>We initiate coverage on the stock of Universal Display Corporation with a ‘Hold’ rating.</li></ul>

This is our first report on Universal Display Corporation, one of the largest players in the domain of OLED technologies and materials for use in display and solid-state lighting applications.The management anticipates that the OLED market will continue on its long-term growth trajectory.We initiate coverage on the stock of Universal Display Corporation with a ‘Hold’ rating.

Universal Display Corporation: Initiation of Coverage – Contract With Samsung & Other Drivers

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging MercadoLibre, Outset Med, Universal Display, Dexcom</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging MercadoLibre, Outset Med, Universal Display, Dexcom


Breaking Growth Short Candidates: MercadoLibre, Outset Med, Universal Display, Dexcom

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

<a href="https://www.smartkarma.com/entities/7145" target="_blank" data-smartkarma-citation="entities:7145:1">LG Display Co Ltd (034220 KS)</a> is now hitting 52-week highs. It'd not be hard to make a reasonable guess on why its price is going strong now. The market is finally seeing some assurance that LGD still has a decent shot in the flexible OLED space. We don't know how fast and effectively LGD could catch up with Samsung. But what we know is that there is really nobody left other than LGD in this flexible OLED race. If Apple desperately needs to have another OLED supplier (which seems to be a very likely case), then it would have to turn to LGD since there would be no one else. Moreover, things certainly seem to be improving around LGD's flexible OLED production lines. We can find positive signs here and there. Most importantly, LGD wouldn't be making this huge investment on flexible OLED in P10 if it wasn't feeling fully comfortable with the current progress of improvement for production yield. So, would this lead to a much-awaited valuation re-rating in the near-term? Let's find it out.

LG Display Co Ltd (034220 KS) is now hitting 52-week highs. It'd not be hard to make a reasonable guess on why its price is going strong now. The market is finally seeing some assurance that LGD still has a decent shot in the flexible OLED space. We don't know how fast and effectively LGD could catch up with Samsung. But what we know is that there is really nobody left other than LGD in this flexible OLED race. If Apple desperately needs to have another OLED supplier (which seems to be a very likely case), then it would have to turn to LGD since there would be no one else. Moreover, things certainly seem to be improving around LGD's flexible OLED production lines. We can find positive signs here and there. Most importantly, LGD wouldn't be making this huge investment on flexible OLED in P10 if it wasn't feeling fully comfortable with the current progress of improvement for production yield. So, would this lead to a much-awaited valuation re-rating in the near-term? Let's find it out.

Update on LG Display's Flexible OLED Situation

Global TMT, Consumer, Korea, Deep Fundamental

Julian Yoon

On Friday, company resoundingly beat 4Q16 consensus estimates with revenue and EPS beat of 9% and 31%, respectively.  Following the earnings announcement, stock was up 20% on Friday, to close at $81 per share, which is close to my base case target price of $86.  Figure 1.  4Q16 results vs. consensus<table class="table table-striped"><tbody>
<tr>
<td colspan="2">($ in millions)</td>
</tr>
<tr>
<td>4Q16</td>
<td>Revenue</td>
<td>EPS</td>
</tr>
<tr>
<td>Consenus</td>
<td>68.6</td>
<td>0.42</td>
</tr>
<tr>
<td>Actual</td>
<td>74.6</td>
<td>0.55</td>
</tr>
<tr>
<td>% difference</td>
<td>8.7%</td>
<td>31.0%</td>
</tr>
</tbody></table>In 4Q16, the company saw a significant uptick in materials revenue with total emitter revenue up 25% QoQ despite…

On Friday, company resoundingly beat 4Q16 consensus estimates with revenue and EPS beat of 9% and 31%, respectively.  Following the earnings announcement, stock was up 20% on Friday, to close at $81 per share, which is close to my base case target price of $86.  Figure 1.  4Q16 results vs. consensus

($ in millions)


4Q16
Revenue
EPS


Consenus
68.6
0.42


Actual
74.6
0.55


% difference
8.7%
31.0%

In 4Q16, the company saw a significant uptick in materials revenue with total emitter revenue up 25% QoQ despite…

Universal Display Q4 Results -  Investment Thesis Playing Out.

United States

Universal Display Corporation is a member of the United States Display Consortium.  The consortium is a cooperative industry/government effort aimed at developing an infrastructure to support a North American flat panel display infrastructure.  The Company and its partners are developing high-resolution, full color, light weight Organic Light Emitting Diode (OLED) technology.

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Universal Display (OLED US)

Universal Display Corporation: Acquisition of Merck KGaA & Other Drivers

Universal Display delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed earnings...

Baptista Research

Universal Display Corporation: Initiation of Coverage – Contract With Samsung & Other Drivers

This is our first report on Universal Display Corporation, one of the largest players in the domain of OLED technologies and materials for use in...

Baptista Research

Breaking Growth Short Candidates: MercadoLibre, Outset Med, Universal Display, Dexcom

Breaking Growth stocks combine declining fundamentals with a multiple compression. This week we flag: MercadoLibre, Outset Med, Universal Display,...

Eric Fernandez, CFA

Update on LG Display's Flexible OLED Situation

LG Display Co Ltd (034220 KS) is now hitting 52-week highs. It'd not be hard to make a reasonable guess on why its price is going strong now. The...

Sanghyun Park

Universal Display Q4 Results - Investment Thesis Playing Out.

On Friday, company resoundingly beat 4Q16 consensus estimates with revenue and EPS beat of 9% and 31%, respectively. Following the earnings...

Julian Yoon

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