In today’s briefing:
- Skymark IPO – Valuation
- Pre-IPO MedSci Healthcare Holdings – The Investment Logic, the Business Analysis and the Risks
- Analog Devices Inc: New SPoE PESE & PD Solutions & Other Drivers
- Gap Inc: Gap Store On Amazon & Other Developments
- Ross Stores: Store Additions & Other Drivers
Skymark IPO – Valuation
- Skymark is a little difficult to value given wide dispersions in peer multiples and earnings recovery trajectories.
- However, on balance we believe the issue looks to be on the cheap side.
- In addition, there are several quirks to the balance sheet, not all of which are negative.
Pre-IPO MedSci Healthcare Holdings – The Investment Logic, the Business Analysis and the Risks
- The large physician network is actually the cornerstone for MedSci Healthcare (MHH HK)’s precision omni-channel marketing solutions and RWS solutions, and also the key to support the overall investment logic.
- In fierce competition, how to retain physician network for a long time, convert them into business value continuously and achieve the high growth trend expected by the market is challenging.
- In terms of valuation, MedSci’s valuation could be higher than Medlive due to its stronger physician platform solutions business and medical professional network, but could be lower than HUAYIWANG.
Analog Devices Inc: New SPoE PESE & PD Solutions & Other Drivers
- Analog Devices delivered another all-around beat in the recent quarterly result.
- In Communications, Analog Devices expanded its 5G radio systems leadership with its transceiver portfolio, winning some additional share at key suppliers.
- We provide the stock of Analog Devices with a ‘Hold’ rating with a revision in the target price.
Gap Inc: Gap Store On Amazon & Other Developments
- Gap delivered a strong set of results in the quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
- The company has taken steps to maximize profitability and cash flow while rebalancing and lowering inventory to drive short-term and long-term improvements across its entire business.
- However, the company is proving strength in lifestyle segments, which are growing at an accelerated rate in the current market.
Ross Stores: Store Additions & Other Drivers
- Ross Stores’ results were well above market expectations in terms of revenues as well as earnings as it increased storewide values.
- On the other hand, given their third-quarter sales growth and enhanced holiday assortments, they face their easiest sales and earnings comparisons in the fourth quarter.
- We maintain our ‘Hold’ rating on Ross Stores with a revised target price.
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