In today’s briefing:
- National Storage REIT Placement – Past Deals Have Done Well but Stock Looks Toppish
- PNB Housing Finance Rights Issue – Finally Closing in on the Capital Raising
- ZKH Group IPO: The Bear Case
- Quest Diagnostics Incorporated: Initiation of Coverage – Business Strategy & Key Drivers
- Snap-on Incorporated: Initiation of Coverage – Business Strategy & Recent Developments
- Zimmer Biomet Holdings Inc.: Initiation of Coverage – Acquisition Of Embody & Other Drivers
National Storage REIT Placement – Past Deals Have Done Well but Stock Looks Toppish
- National Storage REIT (NSR AU) (NSREIT) aims to raise around US$200m (A$300m) via an institutional placement.
- Past deals have ended up doing well, however, the stock now appears toppish and it’s unclear if the deal was well flagged.
- In this note, we will talk about the placement and run the deal through our ECM framework.
PNB Housing Finance Rights Issue – Finally Closing in on the Capital Raising
- PNB Housing Finance Ltd (PNBHOUSI IN) (PHBHF) aims to raise up to US$300m via a rights issue in order to boost its capital base.
- PNBHF is the housing finance arm of Punjab National Bank and is partly owned by Carlyle, with investments from General Atlantic as well.
- In this note, we will talk about the rights issue and other deal dynamics.
ZKH Group IPO: The Bear Case
- ZKH Group (ZKH US), a leading MRO (maintenance, repair, and operations) procurement service platform in China, is pre-marketing an NYSE IPO to raise US$200-300 million.
- In ZKH Group IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on market share losses, slowing top-line growth, declining take rates and persistent cash burn.
Quest Diagnostics Incorporated: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on leading diagnostic service provider, Quest Diagnostics Incorporated.
- The company produced significant double-digit growth in prenatal genetics and pharmaceutical services for sophisticated diagnostics.
- Agilent Technologies further signed an agreement with Quest to make the Agilent Resolution ctDx FIRST liquid biopsy next-generation sequencing (NGS) test available to providers and patients across the U.S.
Snap-on Incorporated: Initiation of Coverage – Business Strategy & Recent Developments
- This is our first report on Snap-on Incorporated, a well-known manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions in the U.S.
- The company’s last result was an all-around beat and its organic sales growth was in the double-digits with a particularly strong performance in the Repair Systems & Information Group, high single-digit gains in the Snap-on Tools Group, and low single-digit gains in the Commercial and Industrial Group.
- Snap-on Tools Group sales were $542.7 million, up from $504.8 million a year ago, with a 9.6% increase in organic sales.
Zimmer Biomet Holdings Inc.: Initiation of Coverage – Acquisition Of Embody & Other Drivers
- This is our first report on the global medical technology behemoth Zimmer Biomet Holdings.
- They observed another quarter of year-over-year growth in major joints, with their entire global hip and knee business expanding by more than 8% and 10% on an ex FX basis.
- We initiate coverage on the stock of Zimmer Biomet Holdings, Inc. with a ‘Hold’ rating.
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