In today’s briefing:
- Dropsuite (DSE AU): NinjaOne’s A$5.90/Share Scheme
- Initiating Coverage on SUZANO: Headline Risk Limits Upside Potential
- Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?
- Nucor Corporation: Resilience & Growth in Plate Production Powering Our Optimism! – Major Drivers
- SCZ: Strong Q4 Production Results; Big Year Ahead in 2025
- Talos Energy Inc. – Estimate Update; Testing High-Impact Prospects in 1H25
Dropsuite (DSE AU): NinjaOne’s A$5.90/Share Scheme
- Dropsuite (DSE AU), a backup, recovery and protection software company, has entered into a Scheme Implementation Deed with Texas-based IT automation outfit NinjaOne.
- NinjaOne is offering A$5.90/share, a 34.1% premium to last close. Apart from Dropsuite’s shareholder approval, the Offer requires FIRB signing off. The Offer has the unanimous backing of both boards.
- The Offer also has the backing of Dropsuite’s largest shareholder, Topline Capital (31%). Board & management hold a further 9%. Implementation is expected late May 2025. This is done.
Initiating Coverage on SUZANO: Headline Risk Limits Upside Potential
- Within Suzano’s capital structure, we prefer the 3.750% 2031 and 3.125% 2032 bonds, as they compare favorably to select peers, the broader EM BBB Index, and the US BBB Index.
- Uncertainty over Brazil’s economic outlook, including currency weakness and fiscal challenges, along with potential trade policy risks under the new US administration, increases headline risk and limits upside potential.
- Suzano is the world’s largest producer of eucalyptus pulp and a leading integrated pulp and paper company.
Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?
- Krishca Strapping Solutions (KRISHCA IN) is India’s first “Lead-Free” and eco-friendly production line for the heat treatment of steel strapping.
- The company is aggressively pursuing growth, aiming for a 25% revenue increase in the current financial year and EBITDA margin is anticipated to stay between 15% and 20%
- The company is investing in a new special steel production plant in Chennai and launching subsidiaries in the UAE and Singapore to tap into new markets
Nucor Corporation: Resilience & Growth in Plate Production Powering Our Optimism! – Major Drivers
- Nucor Corporation has delivered a mixed performance during its fourth quarter of 2024, marked by safety achievements and strategic growth investments alongside certain operational challenges.
- On the positive front, Nucor reported its safest year in history with a notable reduction in workplace injuries, reflecting a strong corporate culture focusing on safety.
- Financially, the company achieved earnings of $1.22 per share for the fourth quarter, contributing to an annual total of $8.46 per share.
SCZ: Strong Q4 Production Results; Big Year Ahead in 2025
- Santacruz reported its Q4/24 production results, that beat our estimates and its Q3/24 results.
- We expect continued optimization and improved efficiencies at its Bolivian assets in 2025.
- We recently initiated coverage on SCZ, read the report here.
Talos Energy Inc. – Estimate Update; Testing High-Impact Prospects in 1H25
- The Katmai West #2 appraisal well is expected to commence production toward the end of 2Q25.
- Gross deliverability from the well, which encountered more than 400 feet of gross hydrocarbon pay in the primary reservoir objective, is estimated to be ~15-20 MBOE/d.
- Performance from the Katmai West #1 well, together with the results from this well, has nearly doubled the estimated proved reserve ultimate recovery to ~50 million BOE (gross) and supports Talos’ total estimated resource potential of ~100 MMBOE (gross).
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