In today’s briefing:
- CALB IPO – Low-End Appears Reasonable but Will Still Need Some Charging Support
- Softbank – So The Arm IPO Isn’t Looking All That Hot Then?
- Breaking Growth Short Candidates: Outset Med., NVIDIA, Intuitive Surgical, Plug Power
- CALB IPO Valuation Analysis
- Fiserv Inc: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (09/2022)
- Fiserv Inc: Initiation of Coverage – Portfolio Expansion & Other Key Drivers
- PTC Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (09/2022)
- ON Semiconductor Corporation- Initiation of Coverage – Capacity Expansion & Other Drivers
- Nutanix Inc.: Initiation of Coverage – Financial Forecasts
- PTC Inc.: Initiation of Coverage – The Intland Software Acquisition & Other Drivers
CALB IPO – Low-End Appears Reasonable but Will Still Need Some Charging Support
- CALB aims to raise up to US$1.7bn in its Hong Kong IPO.
- CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products.
- In this note, we will run the deal through our ECM framework and talk about IPO pricing.
Softbank – So The Arm IPO Isn’t Looking All That Hot Then?
- Apparently prospects for a high valuation on a potential Arm IPO are so staggeringly, AI-rifically good that Masayoshi Son is now sounding out Samsung on a strategic partnership.
- Samsung itself has not been having the greatest time of late with Micron and SK Hynix making serious inroads against its prior technological leadership in memory.
- So as desperate and desperate-er ponder an alliance we can only be thoroughly convinced that this move absolutely, positively has nooooothing to do with trying to prop up share prices.
Breaking Growth Short Candidates: Outset Med., NVIDIA, Intuitive Surgical, Plug Power
- This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
- The key judgement is whether a slowdown is temporary or the beginning of a trend. These shorts tend to have high valuations and betas. Multiple compression accelerates the stock’s decline.
- Today we are flagging Outset Med., NVIDIA, Intuitive Surgical, Plug Power
CALB IPO Valuation Analysis
- CALB (3931 HK) is getting ready to complete its IPO in early October in Hong Kong. The IPO price range is between HK$38 and HK$51 per share.
- Based on our valuation sensitivity analysis, our base case valuation of CALB is HK$53 per share, which is 20% higher than the mid-point of the IPO price range.
- CALB has a rare combination of surging sales growth rate, operating profitability, and increasing market share in the EV battery market globally.
Fiserv Inc: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (09/2022)
- Fiserv is a major global provider of fintech solutions related to payments, account processing, e-commerce, digital banking solutions, card issuer processing, and cloud-based Point-of-Sale solutions.
- Some recent client wins include Wawa, a large chain of gas stations and convenience stores, Indian Oil Corporation, and, Great Southern Bank.
- The company is transforming from selling merchants’ solutions for individual points to offering operating systems: Carat for large enterprises and Clover for medium and small-sized merchants.
Fiserv Inc: Initiation of Coverage – Portfolio Expansion & Other Key Drivers
- This is our first report on Fiserv, a major global provider of fintech solutions related to payments, account processing, e-commerce, digital banking solutions, card issuer processing, and cloud-based Point-of-Sale solutions.
- The company delivered a strong quarterly result, surpassing Wall Street expectations on all counts with a strong organic revenue growth.
- The global active merchants’ accounts of the company grew.
PTC Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (09/2022)
- PTC is an emerging software company that operates in the rather competitive domains of computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM), and service lifecycle management (SLM).
- The company had a rough third quarter and delivered a significantly below par result in terms of both, revenues and earnings.
- Its Windchill+ is still in the early stages of the SaaS transformation which was a slowing factor though PTC had a decent SaaS quarter for Windchill, thanks mostly to a decent mix of SaaS in new projects.
ON Semiconductor Corporation- Initiation of Coverage – Capacity Expansion & Other Drivers
- This is our first report on ON Semiconductor Corporation, a well-known provider of intelligent sensing and power solutions.
- The management has streamlined their product line by eliminating price-sensitive products in favour of fiercely competitive Intelligent Power and Sensing Solutions.
- Because of the solutions’ strong performance, the depth of their intelligent power and sensor portfolio, and end-to-end manufacturing capabilities, their clients select ON Semiconductors as a strategic partner to support their long-term technology roadmaps.
Nutanix Inc.: Initiation of Coverage – Financial Forecasts
- This is our first report on enterprise cloud platform provider, Nutanix.
- The company’s Nutanix Cloud Platform users increased their use of it in the fourth quarter and expanded their adoption of related solutions in fields like storage, Database as a Service, and cloud management.
- In contrast, they are standardizing Nutanix database service for maintaining and deploying their databases throughout their enterprise.
PTC Inc.: Initiation of Coverage – The Intland Software Acquisition & Other Drivers
- This is our first report on PTC, an emerging software player in the computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM), and service lifecycle management (SLM) space.
- The company had a rough third quarter and delivered a significantly below par result in terms of both, revenues and earnings.
- Its Windchill+ is still in the early stages of the SaaS transformation which was a slowing factor though PTC had a decent SaaS quarter for Windchill, thanks mostly to a decent mix of SaaS in new projects.
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