Equity Long-Short Analyst

Pyari Menon

Equity Bottom-Up

<ul>
<li>With its <a href="https://www.smartkarma.com/entities/danaher-corp" target="_blank" data-smartkarma-citation="entities:8243:1" rel="noopener">Danaher Corp (DHR US)</a> heritage, <a href="https://www.smartkarma.com/entities/veralto-corp" target="_blank" data-smartkarma-citation="entities:40472:1" rel="noopener">Veralto (VLTO US)</a> has built a foundation based on durable and recurring sales growth, high profitability, and strong cash generation.</li>
<li>Veralto's products and services are mission-critical yet account for less than 1% of client costs, leading to high switching costs and ensuring customer retention and financial resilience through economic cycles.</li>
<li>Veralto holds market leadership in both its Water Quality (WQ) and Product Quality &amp; Innovation (PQI) segments, which positions it well for the increasing regulatory and environmental demands. .</li>
</ul>


With its Danaher Corp (DHR US) heritage, Veralto (VLTO US) has built a foundation based on durable and recurring sales growth, high profitability, and strong cash generation.
Veralto's products and services are mission-critical yet account for less than 1% of client costs, leading to high switching costs and ensuring customer retention and financial resilience through economic cycles.
Veralto holds market leadership in both its Water Quality (WQ) and Product Quality &amp; Innovation (PQI) segments, which positions it well for the increasing regulatory and environmental demands. .


Veralto: The Power of Customer Dependency and Recurring Revenue

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.

<ul><li>Xylem's performance in the second quarter of 2024 has exceeded expectations across several key metrics.</li><li>The company has demonstrated strong financial and operational results, driven by strategic initiatives and market expansion efforts, particularly with the integration of Evoqua.</li><li>This synergy has not only strengthened their market position but also brought about cost efficiencies.</li></ul>

Xylem's performance in the second quarter of 2024 has exceeded expectations across several key metrics.The company has demonstrated strong financial and operational results, driven by strategic initiatives and market expansion efforts, particularly with the integration of Evoqua.This synergy has not only strengthened their market position but also brought about cost efficiencies.

Xylem Inc.: Strategic Focus On Emerging Markets & Diverse Portfolio Driving Our Bullish Thesis! - Major Drivers

<ul><li>On the optimistic front, Xylem reported a formidable first-quarter, outperforming expectations across revenue, margin, and earnings per share.</li><li>Xylem's team led high single-digit organic revenue growth attributed to evenly distributed volume and price.</li><li>Furthermore, they achieved an almost 300 basis points expansion in adjusted EBITDA margin, driving EPS growth of 14%.</li></ul>

On the optimistic front, Xylem reported a formidable first-quarter, outperforming expectations across revenue, margin, and earnings per share.Xylem's team led high single-digit organic revenue growth attributed to evenly distributed volume and price.Furthermore, they achieved an almost 300 basis points expansion in adjusted EBITDA margin, driving EPS growth of 14%.

Xylem Inc.: Maximizing Value Through Integration! - Major Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500</li>
<li>Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap</li>
<li>4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.</li>
</ul>


While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500
Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap
4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.


Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

<ul><li>Xylem Inc.</li><li>delivered a strong financial performance for its fourth quarter, exceeding expectations in both revenue and earnings per share.</li><li>The company recorded a 9% organic revenue growth due to strong demand, coupled with a disciplined execution that contributed to a 90 basis-point expansion in EBITDA margin.</li></ul>

Xylem Inc.delivered a strong financial performance for its fourth quarter, exceeding expectations in both revenue and earnings per share.The company recorded a 9% organic revenue growth due to strong demand, coupled with a disciplined execution that contributed to a 90 basis-point expansion in EBITDA margin.

Xylem Inc: Strong Operational Performance and Future Expectations! - Major Drivers

United States

Xylem, Inc. is a designer, manufacturer, equipment and service provider for water and wastewater applications addressing the full-cycle of water from collection, distribution, and use to the return of water to the environment. The Company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment.

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Xylem Inc (XYL US)

Veralto: The Power of Customer Dependency and Recurring Revenue

Veralto's products and services are typically low cost but critical leading to high recurring sales, solid profitability and a leadership position...

Pyari Menon

Xylem Inc.: Strategic Focus On Emerging Markets & Diverse Portfolio Driving Our Bullish Thesis! - Major Drivers

Xylem's performance in the second quarter of 2024 has exceeded expectations across several key metrics. The company has demonstrated strong...

Baptista Research

Xylem Inc.: Maximizing Value Through Integration! - Major Drivers

On the optimistic front, Xylem reported a formidable first-quarter, outperforming expectations across revenue, margin, and earnings per...

Baptista Research

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Shift Exposure From Growth to Value; Downgrading Tech to market weight $XLK; Upgrading Industrials $XLI to Overweight; Upgrading Utilities $XLU to...

Vermilion Research

Xylem Inc: Strong Operational Performance and Future Expectations! - Major Drivers

Xylem Inc. delivered a strong financial performance for its fourth quarter, exceeding expectations in both revenue and earnings per share. The...

Baptista Research

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