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

Walgreens Boots Alliance / Equity Capital Markets

<ul><li>Walgreens Boots Alliance delivered a strong quarter result surpassing Wall Street expectations across all business segments, reflecting a strong operational performance.</li><li>Walgreens company has greater access to these patients than any other provider along the care continuum.</li><li>We are optimistic about Walgreens Boots Alliance and give it a 'Hold' rating with a revised target price.</li></ul>

Walgreens Boots Alliance delivered a strong quarter result surpassing Wall Street expectations across all business segments, reflecting a strong operational performance.Walgreens company has greater access to these patients than any other provider along the care continuum.We are optimistic about Walgreens Boots Alliance and give it a 'Hold' rating with a revised target price.

Walgreens Boots Alliance Inc - Investment Thesis

<ul><li>Pharmacy retail giant, Walgreens Boots Alliance has benefitted heavily from the recent Covid-19 vaccinations and related tailwinds over the past 12 months.</li><li>The company has started providing Covid-19 vaccines to patients in the U.K. and has seen a visible increase in operating margins over the past few quarters.</li><li>The management claims to have vaccinated over 25 million people through its pharmacies, driving double-digit growth in its revenues.</li></ul>

Pharmacy retail giant, Walgreens Boots Alliance has benefitted heavily from the recent Covid-19 vaccinations and related tailwinds over the past 12 months.The company has started providing Covid-19 vaccines to patients in the U.K. and has seen a visible increase in operating margins over the past few quarters.The management claims to have vaccinated over 25 million people through its pharmacies, driving double-digit growth in its revenues.

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*Major US Merchant Deal: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch's (APT.AU) [Afterpay] recently announced that it is further expanding its Buy Now, Pay Later (BNPL) model to several major high profile US merchants in order to boost sales and margins. Afterpay is now allowing all US users to shop at 13 retailers by October 2021 - ahead of the holiday shopping season; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past ten months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways.

*Major US Merchant Deal: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch's (APT.AU) [Afterpay] recently announced that it is further expanding its Buy Now, Pay Later (BNPL) model to several major high profile US merchants in order to boost sales and margins. Afterpay is now allowing all US users to shop at 13 retailers by October 2021 - ahead of the holiday shopping season; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past ten months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways. 

Tencent Holdings – Digging In Their Heals

Alpha-Centric ESG Research

Kyle Rudden

The Biden-Harris administration recently announced four "Day One" priorities, the first of which is their COVID-19 response plan. COVID-19 response is first, because it is a prerequisite to economic recovery, which is the second of their four "Day One" priorities.Several investment themes are inherent in Biden's COVID-19 plan, some more direct and obvious than others. This Insight overviews more significant themes and their most representative stocks, in three sections (the first two will be expanded on in separate upcoming reports):<ol>
<li>
COVID-19 Testing: Testing is the largest, most tangible, nearest-term investment opportunity created by Biden's plan. An estimated US$75-100 billion for testing could be windfall for certain stocks, but not all. Selectivity is key, and timing is critical (related to vaccine development).</li>
<li>
Vaccine Delivery: Biden's plan emphasises vaccine manufacturing and delivery, versus vaccine development (Trump had allocated <a href="https://www.hhs.gov/coronavirus/explaining-operation-warp-speed/index.html" target="_blank" rel="noopener">billions</a> to vaccine development companies). Some might go to big pharma companies for M&amp;D, but most should benefit other "cold chain" stocks.</li>
<li>
PPE Supply/Other: PPE manufacturing, of course, but that is largely old news. I will address it, but do so along with other more interesting collateral themes. For example, retail drugs chains, elder-care, medical technologies, and a few other related industries.</li>
</ol>

The Biden-Harris administration recently announced four "Day One" priorities, the first of which is their COVID-19 response plan. COVID-19 response is first, because it is a prerequisite to economic recovery, which is the second of their four "Day One" priorities.Several investment themes are inherent in Biden's COVID-19 plan, some more direct and obvious than others. This Insight overviews more significant themes and their most representative stocks, in three sections (the first two will be expanded on in separate upcoming reports):

COVID-19 Testing: Testing is the largest, most tangible, nearest-term investment opportunity created by Biden's plan. An estimated US$75-100 billion for testing could be windfall for certain stocks, but not all. Selectivity is key, and timing is critical (related to vaccine development).

Vaccine Delivery: Biden's plan emphasises vaccine manufacturing and delivery, versus vaccine development (Trump had allocated billions to vaccine development companies). Some might go to big pharma companies for M&amp;D, but most should benefit other "cold chain" stocks.

PPE Supply/Other: PPE manufacturing, of course, but that is largely old news. I will address it, but do so along with other more interesting collateral themes. For example, retail drugs chains, elder-care, medical technologies, and a few other related industries.


Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

It was reported by Bloomberg on Monday (11th November) that Walgreens Boots Alliance (WBA) was offered a buyout deal by private equity firm KKR. The Financial Times (FT) reported last week (06th November) that WBA has been exploring a USD70bn buy-out deal. WBA reportedly wants to go private and KKR is interested in buying the firm. If the deal goes through, it will mark the world’s largest private takeover in history.WBA’s pharmaceutical business has been struggling due to intense competition from online giants such as Amazon and Walmart, the negative impact from the proposed bill on lowering drug prices and the cut in prescription reimbursements by the UK’s National Health Service (NHS). The company has initiated a restructuring plan and aims to achieve annual cost savings in excess of USD1.8bn by 2022.The company’s financial performance has deteriorated over the last 2-3 years and it has been on the lookout for suitable partnerships or joint ventures to rescue its business. The terms of the deal or whether WBA has agreed to go private have not yet been announced. If we are to go by the FT, a deal of USD70bn implies a 32.4% premium on the company’s share price of USD59.24 per share (at the time of writing the note). It remains to be seen what plans KKR has in mind for the troubled drugstore company and how it will turn-around the business into an attractive company.

It was reported by Bloomberg on Monday (11th November) that Walgreens Boots Alliance (WBA) was offered a buyout deal by private equity firm KKR. The Financial Times (FT) reported last week (06th November) that WBA has been exploring a USD70bn buy-out deal. WBA reportedly wants to go private and KKR is interested in buying the firm. If the deal goes through, it will mark the world’s largest private takeover in history.WBA’s pharmaceutical business has been struggling due to intense competition from online giants such as Amazon and Walmart, the negative impact from the proposed bill on lowering drug prices and the cut in prescription reimbursements by the UK’s National Health Service (NHS). The company has initiated a restructuring plan and aims to achieve annual cost savings in excess of USD1.8bn by 2022.The company’s financial performance has deteriorated over the last 2-3 years and it has been on the lookout for suitable partnerships or joint ventures to rescue its business. The terms of the deal or whether WBA has agreed to go private have not yet been announced. If we are to go by the FT, a deal of USD70bn implies a 32.4% premium on the company’s share price of USD59.24 per share (at the time of writing the note). It remains to be seen what plans KKR has in mind for the troubled drugstore company and how it will turn-around the business into an attractive company.

Walgreens Boots Alliance: KKR Offers to Take the Drugstore Giant Private

United States

Walgreens Boots Alliance, Inc., operates retail drugstores that offer a wide variety of prescription and non-prescription drugs as well as general goods. Walgreens' also offers health services, including primary and acute care, wellness, pharmacy and disease management services and health and fitness.

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Walgreens Boots Alliance (WBA US)

Walgreens Boots Alliance Inc - Investment Thesis

Walgreens Boots Alliance delivered a strong quarter result surpassing Wall Street expectations across all business segments, reflecting a strong...

Baptista Research

Walgreens Boots Alliance Inc - Investment Thesis

Pharmacy retail giant, Walgreens Boots Alliance has benefitted heavily from the recent Covid-19 vaccinations and related tailwinds over the past...

Baptista Research

Tencent Holdings – Digging In Their Heals

TENCENT HOLDINGS: Tencent' s Afterpay recently announced a further expansion of its BNPL model to several major US merchants in order to boost...

Thomas J. Monaco

Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes

Biden's recently-announced COVID-19 response plan suggests a number of investment themes. This Insight overviews the more significant of those...

Kyle Rudden

Walgreens Boots Alliance: KKR Offers to Take the Drugstore Giant Private

It was reported by Bloomberg on Monday (11th November) that Walgreens Boots Alliance (WBA) was offered a buyout deal by private equity firm KKR....

Shifara Samsudeen, ACMA, CGMA

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