Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

<ul>
<li>Lichen China, niche provider of financial and taxation services, filed for an IPO in the United States, and plans to raise ~$25M. Investment bank Univest Securities is leading the offering. </li>
<li>The company applied to list Class A shares on the Nasdaq Capital Market under the symbol <a href="https://www.smartkarma.com/entities/lichen-china-limited" target="_blank" data-smartkarma-citation="entities:36311:1" rel="noopener">Lichen China (LICN US)</a> and will have Class A shares and Class B shares. </li>
<li>We have a favorable view of the upcoming IPO, and consider an IPO valuation of ~$119M as attractive at ~2x EV/FY22E revenue and a forward P/E of ~14x.  </li>
</ul>


Lichen China, niche provider of financial and taxation services, filed for an IPO in the United States, and plans to raise ~$25M. Investment bank Univest Securities is leading the offering. 
The company applied to list Class A shares on the Nasdaq Capital Market under the symbol Lichen China (LICN US) and will have Class A shares and Class B shares. 
We have a favorable view of the upcoming IPO, and consider an IPO valuation of ~$119M as attractive at ~2x EV/FY22E revenue and a forward P/E of ~14x.  


Lichen China IPO Preview: Your Trusted Provider of Financial and Taxation Services

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>Intuit Inc. is off to a strong start in 2022 with continued momentum from the previous year and is on track to become a worldwide AI-driven expert platform that powers small business customers.</li><li>The total revenue growth of the company was above Wall Street expectations was driven by self-employed and small business growth and Credit Karma revenue.</li><li>With the closing of the Mailchimp transaction, Intuit is raising its earnings per share and revenue guidance which is a positive sign.</li></ul>

Intuit Inc. is off to a strong start in 2022 with continued momentum from the previous year and is on track to become a worldwide AI-driven expert platform that powers small business customers.The total revenue growth of the company was above Wall Street expectations was driven by self-employed and small business growth and Credit Karma revenue.With the closing of the Mailchimp transaction, Intuit is raising its earnings per share and revenue guidance which is a positive sign.

Intuit Inc.: Credit Karma Growth & Other Drivers

<ul><li>Intuit’s stock price has taken a beating over the past few months along with most premium tech stocks but the company’s fundamentals are strong.</li><li>It is worth highlighting that Intuit is looking to become an AI-driven expert platform worldwide, powering small businesses and consumers.</li><li>The overall growth in revenue of Intuit today, has been powered by Credit Karma revenue, self-employed group, and small business revenue growth.</li></ul>

Intuit’s stock price has taken a beating over the past few months along with most premium tech stocks but the company’s fundamentals are strong.It is worth highlighting that Intuit is looking to become an AI-driven expert platform worldwide, powering small businesses and consumers.The overall growth in revenue of Intuit today, has been powered by Credit Karma revenue, self-employed group, and small business revenue growth.

Equity Bottom-Up

<ul>
<li>Shares of <a href="https://www.smartkarma.com/entities/bigcommerce-holdings-inc" target="_blank" data-smartkarma-citation="entities:29196:1" rel="noopener">BigCommerce Holdings (BIGC US)</a>  slipped below the IPO price of <strong>$24.00</strong> per share, and at current valuation, we see limited downside risk for BigCommerce stock investors.  </li>
<li>In 2020, <a href="https://www.smartkarma.com/entities/intuit-inc" target="_blank" data-smartkarma-citation="entities:8235:1" rel="noopener">Intuit Inc (INTU US)</a>  offered to acquire BigCommerce for $1.5 billion, according to CNBC and other public sources. Both BigCommerce and Intuit didn’t provide a comment.</li>
<li>Insider selling activity has slowed down noticeably over the past three months and <a href="https://www.smartkarma.com/entities/bigcommerce-holdings-inc" target="_blank" data-smartkarma-citation="entities:29196:1" rel="noopener">BigCommerce Holdings (BIGC US)</a>  insiders sold ~$5 million worth of shares. </li>
</ul>


Shares of BigCommerce Holdings (BIGC US)  slipped below the IPO price of $24.00 per share, and at current valuation, we see limited downside risk for BigCommerce stock investors.  
In 2020, Intuit Inc (INTU US)  offered to acquire BigCommerce for $1.5 billion, according to CNBC and other public sources. Both BigCommerce and Intuit didn’t provide a comment.
Insider selling activity has slowed down noticeably over the past three months and BigCommerce Holdings (BIGC US)  insiders sold ~$5 million worth of shares. 


BigCommerce: Stock Selloff Looks Finished As Valuation Hit $1.5 Billion

Value Investing

Vladimir Dimitrov, CFA

<ul>
<li>Intuit returned a negative 27% since I warned for pending risks for the share price back in November of last year.</li>
<li>While most of that disappointing performance was due to market related risks, the company's strategy seems to be changing rapidly.</li>
<li>Shifting the focus from a pure organic-led growth to an M&amp;A frenzy is a bad omen in the already richly priced software space.</li>
</ul>


Intuit returned a negative 27% since I warned for pending risks for the share price back in November of last year.
While most of that disappointing performance was due to market related risks, the company's strategy seems to be changing rapidly.
Shifting the focus from a pure organic-led growth to an M&amp;A frenzy is a bad omen in the already richly priced software space.


Intuit: A Strategy Shift And High Momentum Exposure

United States

VMware, Inc. provides virtualization solutions from the desktop to the data center. The Company's solution products addresses a range of IT problems, which includes cost and operational inefficiencies, business continuity, software lifecycle management and desktop management.

Electronic Arts Inc. develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The Company also provides online game-related services.

ServiceNow, Inc. provides enterprise information technology (IT) management software. The Company designs, develops, and produces prepackaged computer software, cloud services, and IT service management platform. ServiceNow serves customers throughout the United States.

Check Point Software Technologies Ltd. develops, markets and supports a range of software and hardware products and services for information technology (IT) security and offers its customers a network and gateway security solutions, data and endpoint security solutions and management solutions.

SS&C Technologies Holdings, Inc. develops and markets computer software for financial services providers.  The software enables trading and modeling, portfolio management and reporting, accounting, performance measurement, reconciliation, reporting, processing, and clearing.

Fair Isaac Corporation provides analytics, including predictive modeling, decision analysis, intelligence management, decision management systems, and consulting services.  The Company helps companies in countries around the world acquire customers more efficiently, increase customer value, reduce fraud, lower operating expenses, and enter new markets more profitably.

Synopsys, Inc. supplies electronic design automation solutions to the global electronics market.  The Company provides design technologies to creators of advanced integrated circuits, electronic systems, and systems on a chip. Synopsys also provides consulting services and support to its customers to streamline the overall design process and accelerate time to market.

Activision Blizzard, Inc. publishes, develops, and distributes interactive entertainment software and peripheral products. The Company's products cover diverse game categories, including action/adventure, action sports, racing, role playing, simulation, first-person action, music-based gaming and strategy.

Workday, Inc. provides enterprise cloud-based applications. The Company offers human capital, spend, and financial management, as well as payroll, initiatives and higher education solutions. Workday serves the finance, healthcare, manufacturing, education, and technology industries worldwide.

HubSpot, Inc. provides a cloud-based marketing and sales software platform. The Company offers integrated applications that helps in lead generation and social marketing.

Nintendo Co., Ltd. globally develops, manufactures and sells home-use video game hardware and software in home entertainment business.  The company also produces home-game products including cards.

Nexon Co., Ltd. mainly develops and services, online games for PC and mobile devices. The company also offers consulting services related to online-games. Nexon operates in Japan.

Dassault Systemes operates as a software company. The develops and offers 3Dexperience platform to create innovative new products and services using virtual experiences. Dassault Systemes serves aerospace, construction, business services, consumer packaged goods, high-tech, life science, health care, marine, energy, and industrial equipment industries worldwide.

WiseTech Global Pty Ltd provides various technology and information technology management solutions. The Company offers cloud based various technology platforms, market specific software and logistics technology solutions, such as edienterprise, a platform supply chain logistics management system, software-as-a-service, and clinical management software. 

Constellation Software Inc is a software holding company.  The Company acquires mission-critical, vertical market software companies, and helps them to grow.

Spotify Technology S.A. provides music streaming services. The Company offers commercial free music and ad-supported services to subscribers. Spotify Technology serves clients worldwide.

Dassault Systemes is a technology company. The company provides software applications services designed to support client company's innovation processes. The company's line of business includes provision of 3D design software, 3D digital mock up and product lifecycle Management. Dassault Systemes also provides several software brands.

Xero Limited offers an online accounting system.  The software features bank transaction importing, a cashbook, a general ledger, invoicing, accounts receivable, accounts payable, financial reporting, and management of expense claims.

CAPCOM CO., LTD. develops consumer video game software.  The Company also develops, manufactures, markets, and leases arcade game machines.  Capcom also operates amusement facilities.

International Games System Co., Ltd. plans, designs, develops, manufactures, and markets software and hardware for arcade games, PC games, and Internet on-line games.

Intuit Inc. develops and markets business and financial management software solutions for small and medium sized businesses, financial institutions, consumers, and accounting professionals  The Company provides software for small business management and payroll processing, personal finance, and tax preparation and filing.

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Intuit Inc (INTU US)

Lichen China IPO Preview: Your Trusted Provider of Financial and Taxation Services

We have a favorable view of the upcoming Lichen China IPO and see potential for sustained growth and profitability expansion over time

Andrei Zakharov

Intuit Inc.: Credit Karma Growth & Other Drivers

Intuit Inc. is off to a strong start in 2022 with continued momentum from the previous year and is on track to become a worldwide AI-driven expert...

Baptista Research

Intuit Inc.: Financial & Price Forecasts

Intuit’s stock price has taken a beating over the past few months along with most premium tech stocks but the company’s fundamentals are...

Baptista Research

BigCommerce: Stock Selloff Looks Finished As Valuation Hit $1.5 Billion

Our analysis suggests risk/reward for BigCommerce shares looks strong, and downside potential may be limited as BigCommerce stock is undervalued...

Andrei Zakharov

Intuit: A Strategy Shift And High Momentum Exposure

Intuit returned a negative 27% since I warned for pending risks for the share price back in November of last year. While most of that...

Vladimir Dimitrov, CFA

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