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.

Credit

<ul>
<li>Xerox Holdings Corporation is one of the global leaders in printing, document management systems, and other workplace technologies.</li>
<li>With increasing digitization in workplaces, the company is facing a challenging macro-economic landscape and has become a loss making company over the past few quarters.</li>
<li>The management also recently announced the launch of a complete range of solutions for the productivity of the workplace.</li>
</ul>


Xerox Holdings Corporation is one of the global leaders in printing, document management systems, and other workplace technologies.
With increasing digitization in workplaces, the company is facing a challenging macro-economic landscape and has become a loss making company over the past few quarters.
The management also recently announced the launch of a complete range of solutions for the productivity of the workplace.


Xerox Holdings Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Bottom-Up

<ul>
<li>This is our first report on legacy workspace technology major, Xerox Holdings Corporation.</li>
<li>With increasing digitization in workplaces, the company is facing a challenging macro-economic landscape and has become a loss making company over the past few quarters.</li>
<li>Among major acquisitions, Xerox has recently acquired Go Inspire for growing the presence of digital services in the UK.</li>
</ul>


This is our first report on legacy workspace technology major, Xerox Holdings Corporation.
With increasing digitization in workplaces, the company is facing a challenging macro-economic landscape and has become a loss making company over the past few quarters.
Among major acquisitions, Xerox has recently acquired Go Inspire for growing the presence of digital services in the UK.


Xerox Holdings Corporation: Initiation of Coverage – New Products Launches

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

On Friday post market close, S&amp;P Dow Jones announced the results of the March review for the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> that will be effective after the close of trading on 19 March.There are 4 additions - <a href="https://www.smartkarma.com/entities/nxp-semiconductors-nv" target="_blank" data-smartkarma-citation="entities:9801:1" rel="noopener">Nxp Semiconductors Nv (NXPI US)</a>, <a href="https://www.smartkarma.com/entities/penn-national-gaming-inc" target="_blank" data-smartkarma-citation="entities:5588:1" rel="noopener">Penn National Gaming (PENN US)</a>, <a href="https://www.smartkarma.com/entities/generac-holdings-inc" target="_blank" data-smartkarma-citation="entities:16223:1" rel="noopener">Generac Holdings (GNRC US)</a> and <a href="https://www.smartkarma.com/entities/caesars-entertainment-corp" target="_blank" data-smartkarma-citation="entities:15532:1" rel="noopener">Caesars Entertainment (CZR US)</a>. To balance that out, there are 4 deletions - <a href="https://www.smartkarma.com/entities/flowserve-corp" target="_blank" data-smartkarma-citation="entities:20555:1" rel="noopener">Flowserve Corp (FLS US)</a>, <a href="https://www.smartkarma.com/entities/sl-green-realty-corp" target="_blank" data-smartkarma-citation="entities:1548:1" rel="noopener">Sl Green Realty (SLG US)</a>, <a href="https://www.smartkarma.com/entities/xerox-holdings-corp" target="_blank" data-smartkarma-citation="entities:17585:1" rel="noopener">Xerox Corp (XRX US)</a> and <a href="https://www.smartkarma.com/entities/vontier-corp" target="_blank" data-smartkarma-citation="entities:28857:1" rel="noopener">Vontier Corp (VNT US)</a>.We estimate one-way turnover will be around US$22.4bn and the funding trade will see selling on a lot of the current index constituents.The biggest impact of the changes will be on <a href="https://www.smartkarma.com/entities/nxp-semiconductors-nv" target="_blank" data-smartkarma-citation="entities:9801:1" rel="noopener">Nxp Semiconductors Nv (NXPI US)</a> where we estimate passive funds will need to buy around 11 days of ADV on the stock. The impact on the other stocks is much lower due to the move between the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> and the S&amp;P Mid Cap 400 indices.

On Friday post market close, S&amp;P Dow Jones announced the results of the March review for the S&amp;P 500 (SPX INDEX) that will be effective after the close of trading on 19 March.There are 4 additions - Nxp Semiconductors Nv (NXPI US), Penn National Gaming (PENN US), Generac Holdings (GNRC US) and Caesars Entertainment (CZR US). To balance that out, there are 4 deletions - Flowserve Corp (FLS US), Sl Green Realty (SLG US), Xerox Corp (XRX US) and Vontier Corp (VNT US).We estimate one-way turnover will be around US$22.4bn and the funding trade will see selling on a lot of the current index constituents.The biggest impact of the changes will be on Nxp Semiconductors Nv (NXPI US) where we estimate passive funds will need to buy around 11 days of ADV on the stock. The impact on the other stocks is much lower due to the move between the S&amp;P 500 (SPX INDEX) and the S&amp;P Mid Cap 400 indices.

S&P500 Index Rebalance: NXPI Is the One to Watch

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, 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

<ul><li>Xerox announced on Tuesday (31st March) that it is withdrawing its tender offer to acquire HP and will no longer seek to nominate its candidates for HP’s board of directors.</li></ul><blockquote>
“The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. (NYSE: HPQ) (“HP”). Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors”
- Xerox
</blockquote><ul>
<li>The company has mentioned that it is prioritising the health, safety and well-being of its employees, customers, partners and stakeholders and its broader response to the pandemic over and above all other considerations.</li>
<li>As we highlighted in our previous insights on Xerox-HP deal, the deal was too big for Xerox who has a market cap of around US$4bn while HP has a market cap of around US$24bn. Though Xerox reiterated that it has obtained the financing required to fund the deal, we believe the ongoing Covid-19 pandemic and the resulting economic uncertainty would have made it difficult for Xerox to obtain the necessary funds.</li>
</ul>

Xerox announced on Tuesday (31st March) that it is withdrawing its tender offer to acquire HP and will no longer seek to nominate its candidates for HP’s board of directors.
“The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. (NYSE: HPQ) (“HP”). Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors”
- Xerox

The company has mentioned that it is prioritising the health, safety and well-being of its employees, customers, partners and stakeholders and its broader response to the pandemic over and above all other considerations.
As we highlighted in our previous insights on Xerox-HP deal, the deal was too big for Xerox who has a market cap of around US$4bn while HP has a market cap of around US$24bn. Though Xerox reiterated that it has obtained the financing required to fund the deal, we believe the ongoing Covid-19 pandemic and the resulting economic uncertainty would have made it difficult for Xerox to obtain the necessary funds.


Xerox Calls Off Its Bid for HP Amid COVID-19 Pandemic; A 5-Months Long Battle Comes to an End

<ul>
<li>In a turn of events surrounding the HP-Xerox merger deal, HP announced on Thursday (20th February) that its board of directors have adopted a shareholder rights plan (poison pill) and declared a dividend distribution of one preferred share purchase right on each outstanding share of HP common stock.</li>
<li>A poison pill is a type of defense used by a target company to prevent a hostile takeover by an acquirer.</li>
<li>The announcement to adopt the shareholder rights plan follows Xerox’s announcement of its intent to commence a tender offer to acquire all of the outstanding shares of HP common stock.</li>
<li>The shareholder rights plan includes a number of measures which could help fend off a takeover bid and is only exercisable if a person or group acquires more than 20% or more of HP’s common stock, subject to certain exceptions.</li>
<li>The plan has a limited duration and will expire in one year on 20th February 2021.</li>
</ul>


In a turn of events surrounding the HP-Xerox merger deal, HP announced on Thursday (20th February) that its board of directors have adopted a shareholder rights plan (poison pill) and declared a dividend distribution of one preferred share purchase right on each outstanding share of HP common stock.
A poison pill is a type of defense used by a target company to prevent a hostile takeover by an acquirer.
The announcement to adopt the shareholder rights plan follows Xerox’s announcement of its intent to commence a tender offer to acquire all of the outstanding shares of HP common stock.
The shareholder rights plan includes a number of measures which could help fend off a takeover bid and is only exercisable if a person or group acquires more than 20% or more of HP’s common stock, subject to certain exceptions.
The plan has a limited duration and will expire in one year on 20th February 2021.


HP Adopts Poison Pill to Battle Xerox Bid; Delay the Inevitable by Aiming to Secure Better Valuation

United States

Xerox Holdings Corporation operates as a holding company. The Company, through its subsidiaries provides printers, scanners, supplies, and accessories. Xerox Holdings serves health care, insurance, government and retail sectors worldwide.

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Xerox Holdings (XRX US)

Xerox Holdings Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Xerox Holdings Corporation is one of the global leaders in printing, document management systems, and other workplace technologies. With...

Baptista Research

Xerox Holdings Corporation: Initiation of Coverage – New Products Launches

This is our first report on legacy workspace technology major, Xerox Holdings Corporation. With increasing digitization in workplaces, the company...

Baptista Research

S&P500 Index Rebalance: NXPI Is the One to Watch

There are 4 changes to the S&P500 with NXP Semiconductors the largest beneficiary of the changes. Estimated one-way turnover is US$22.4bn and there...

Brian Freitas

Xerox Calls Off Its Bid for HP Amid COVID-19 Pandemic; A 5-Months Long Battle Comes to an End

Xerox announced on Tuesday (31st March) that it is withdrawing its tender offer to acquire HP and will no longer seek to nominate its candidates...

Shifara Samsudeen, FCMA, CGMA

HP Adopts Poison Pill to Battle Xerox Bid; Delay the Inevitable by Aiming to Secure Better Valuation

In a turn of events surrounding the HP-Xerox merger deal, HP announced on Thursday (20th February) that its board of directors have adopted a...

Shifara Samsudeen, FCMA, CGMA

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