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>Warner Music Group Corp. delivered a positive result and managed an all-around beat last quarter.</li><li>The recorded music segment witnessed revenue growth, primarily fueled by streaming's positive performance, with subscription and ad-supported revenue contributing to the overall development.</li><li>Music Publishing continued its impressive streak with solid revenue growth propelled by substantial streaming expansion.</li></ul>

Warner Music Group Corp. delivered a positive result and managed an all-around beat last quarter.The recorded music segment witnessed revenue growth, primarily fueled by streaming's positive performance, with subscription and ad-supported revenue contributing to the overall development.Music Publishing continued its impressive streak with solid revenue growth propelled by substantial streaming expansion.

Warner Music Group Corp.: AI in Music - The Future of Creative Fan Interactions! - Major Drivers

Credit

<ul><li>Warner Music Group is one of the top three giants in the music entertainment business across the world.</li><li>Despite the numerous macro challenges, the company achieved double-digit growth for the previous year and outperformed management expectations in several important metrics, such as total revenue, and operating cash flow.</li><li>The company’s music publishing business has shown a remarkable performance and the highlight remains its strong digital revenues which have witnessed a strong momentum given the growth in streaming.</li></ul>

Warner Music Group is one of the top three giants in the music entertainment business across the world.Despite the numerous macro challenges, the company achieved double-digit growth for the previous year and outperformed management expectations in several important metrics, such as total revenue, and operating cash flow.The company’s music publishing business has shown a remarkable performance and the highlight remains its strong digital revenues which have witnessed a strong momentum given the growth in streaming.

Warner Music Group Corp.: Detailed Credit Analysis & Financial Strength Evaluation Report

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>MAUs beat, margins miss, guidance weak. Where / when is the operating leverage?</li>
<li>Podcasting business took a restructuring charge this quarter, not bullish for the business meant to expand gross margins.</li>
<li>TikTok reportedly readying a new streaming music app... not good.</li>
</ul>


MAUs beat, margins miss, guidance weak. Where / when is the operating leverage?
Podcasting business took a restructuring charge this quarter, not bullish for the business meant to expand gross margins.
TikTok reportedly readying a new streaming music app... not good.


<ul>
<li>Warner Music hired YouTube's Chief Business Officer Robert Kyncl as its new CEO, an impressive executive well positioned to expand music monetization to newer frontiers.</li>
<li>The stock has roundtripped its $25 June 2020 IPO price after doubling.</li>
<li>There is a compelling "comping the comp" catalyst path for 2023, as streaming revenues reaccelerate, and Kyncl renegotiates static licensing deals with Peloton, Tiktok, etc.</li>
</ul>


Warner Music hired YouTube's Chief Business Officer Robert Kyncl as its new CEO, an impressive executive well positioned to expand music monetization to newer frontiers.
The stock has roundtripped its $25 June 2020 IPO price after doubling.
There is a compelling "comping the comp" catalyst path for 2023, as streaming revenues reaccelerate, and Kyncl renegotiates static licensing deals with Peloton, Tiktok, etc.


Long Idea: Warner Music’s New CEO Could Prove a Catalyst

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Forensic Accounting

<ul>
<li>This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  </li>
<li>They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.</li>
<li>These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.</li>
</ul>


This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  
They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.
These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.


Earnings Quality Short Candidates: CELH, FTCH, WOLF, WMG

United States

Warner Music Group Corp. records and publishes music. The Company offers music recording, merchandising, sponsoring, touring, and artist management services. Warner Music Group serves customers worldwide.

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Warner Music Group (WMG US)

Warner Music Group Corp.: AI in Music - The Future of Creative Fan Interactions! - Major Drivers

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Warner Music's hiring of YouTube Chief Business Officer Robert Kyncl is an intriguing hire well positioned to increase Warner's monetization in...

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Earnings Quality Short Candidates: CELH, FTCH, WOLF, WMG

Earnings Quality shorts lead to idiosyncratic alpha. Today, we show our model rankings and highlight CELH, FTCH, WOLF, WMG.

Eric Fernandez, CFA

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