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.

Equity Capital Markets

<ul><li>Engineering and software provider, Ansys delivered another decent result with a 21% increase in the top-line, driven by sturdy performance in the semiconductor and high tech verticals.</li><li>The company has seen a strong growth in revenues over the past five years with a consistently high operating margin, often above the 40% threshold.</li><li>With the recent partnership of Ansys with software startup company Oculli, the company's innovation effort is also in top gear.</li></ul>

Engineering and software provider, Ansys delivered another decent result with a 21% increase in the top-line, driven by sturdy performance in the semiconductor and high tech verticals.The company has seen a strong growth in revenues over the past five years with a consistently high operating margin, often above the 40% threshold.With the recent partnership of Ansys with software startup company Oculli, the company's innovation effort is also in top gear.

Cadence Design Sys / Equity Capital Markets

<ul><li>In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the real world.</li><li>This presents an excellent macro-economic scenario for computer aided design and simulation companies like Ansys and Cadence.</li><li>It will be interesting to compare their financial metrics side by side in order to figure out the fundamentally stronger stock.</li></ul>

In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the real world.This presents an excellent macro-economic scenario for computer aided design and simulation companies like Ansys and Cadence.It will be interesting to compare their financial metrics side by side in order to figure out the fundamentally stronger stock.

Ansys vs. Cadence Design: Which Design Software Player Is A More Robust Investment? (12/2021)

<ul><li>Engineering software provider, Ansys delivered a decent result with a 21% increase in the top-line driven by a strong performance in the high tech and semiconductor verticals.</li><li>The company also saw its deferred revenues and backlog grow 2.2% to $899.5 million rendering a foreseeability to its future.</li><li>Apart from technology and semiconductors, the other sectors that are majorly driving this software provider are aerospace, defence, and automotives.</li></ul>

Engineering software provider, Ansys delivered a decent result with a 21% increase in the top-line driven by a strong performance in the high tech and semiconductor verticals.The company also saw its deferred revenues and backlog grow 2.2% to $899.5 million rendering a foreseeability to its future.Apart from technology and semiconductors, the other sectors that are majorly driving this software provider are aerospace, defence, and automotives.

<ul><li>Ansys has reached the target price from our last report as the company was comfortably able to beat its financial guidance across all its key metrics in the recent Q2 result.</li><li>Its total revenue for Q2 rose by nearly 16% in constant currency and a major green flag was the ACV (Average Contract Value) of $430.5 million increased year-over-year by a staggering 25% (and 23% in constant currency).</li><li>Given their strong result, we are optimistic about Ansys and and give it a ‘Hold’ rating with a revised target price.</li></ul>

Ansys has reached the target price from our last report as the company was comfortably able to beat its financial guidance across all its key metrics in the recent Q2 result.Its total revenue for Q2 rose by nearly 16% in constant currency and a major green flag was the ACV (Average Contract Value) of $430.5 million increased year-over-year by a staggering 25% (and 23% in constant currency).Given their strong result, we are optimistic about Ansys and and give it a ‘Hold’ rating with a revised target price.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight developments that are inconsistent with a major bottom in equities that suggests the broad equity market is not yet out of the woods.  In fact, during today's action, the 2760 support level on the S&amp;P 500 briefly held but ultimately gave way. With the SPX holding below 2760 today, we are looking for downside targets of 2650 first, and then potentially 2470 if that fails to hold.</p>

Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight developments that are inconsistent with a major bottom in equities that suggests the broad equity market is not yet out of the woods.  In fact, during today's action, the 2760 support level on the S&amp;P 500 briefly held but ultimately gave way. With the SPX holding below 2760 today, we are looking for downside targets of 2650 first, and then potentially 2470 if that fails to hold.

U.S. Equity Strategy: Several Indicators Suggest a Pullback Likely

United States

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.

Aspen Technology, Inc. provides software solutions. The Company offers asset optimization software that optimizes asset design, operations, and maintenance in complex, industrial environments to enable organizations to meet their business goals for sustainability and profitability. Aspen Technology serves customers worldwide.

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.

Manhattan Associates, Inc. provides information technology solutions for distribution centers.  The solutions are designed to enable the efficient movement of goods through the supply chain.  The Company's solutions optimize the receipt, storage, and distribution of inventory, as well as manage equipment and personnel within a distribution center.

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

Fortinet Inc. provides network security solutions. The Company offers network security appliances and related software, and subscription services. Fortinet systems integrate the industry's broadest suite of security technologies, including firewall, VPN, antivirus, intrusion prevention (IPS), Web filtering, antispam, and traffic shaping.

PTC Inc. develops and delivers technology solutions, comprised of software and services. The Company's technology is primarily used by discrete manufacturers to design, operate and maintain complex products. PTC's technology is also used to connect products to the Internet for purposes of capturing and analyzing information from them.

Tyler Technologies, Inc. provides end-to-end information management solutions and services for local governments. The Company's client base includes local government offices throughout the United States, Canada, Puerto Rico, and the United Kingdom.

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.

Oracle Financial Services Software Ltd. provides comprehensive information technology solutions to the financial services industry worldwide. The Company provides transaction processing and accounting software for banks, investment managers and mutual funds. Oracle Financial also provides internet delivery of financial services as well as business intelligence and analytical applications.

Konami Holdings Corporation provides digital entertainment, health and fitness and gaming products. The Company develops and sells video games, mobile games and computer games, gaming machines, pachislot and pachinko machines, and fitness machines as well as operates health and fitness clubs.

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.

IFLYTEK Co., Ltd. specializes in speech intelligence and artificial intelligence technology.  The company also develops chip product, voice messaging software and e-government system integration software.

Nemetschek AG provides standard software for designing, constructing and managing buildings and real estate.  The Company's software offers cost estimation, design, planning, account calculation, cost management, facilities management, document management and B2B e-commerce capabilities.  Nemetschek's software is sold in approximately 52 countries and 13 languages.

The Sage Group plc is a software publishing company. The Group develops, publishes and distributes accounting and payroll software for personal computer systems. Via its subsidiaries, Sage also maintains a registered user database which provides a market for their related products and services, including computer forms, software support contracts, program upgrades and training.

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. 

CyberArk Software Ltd. provides information technology security solutions. The Company offers services which protect organizational privileged accounts from cyber attacks.

NICE Ltd provides solutions that manage and analyze multimedia content and transactional data, such as telephony, web, radio and video communications. The Company's solutions include integrated, multimedia recording platforms, software applications and related professional services.

ANSYS, Inc. develops, markets, and supports software solutions for design analysis and optimization.  The Company's software accelerates product time to market, reduces production costs, improves engineering processes, and optimizes product quality and safety for a variety of manufactured products.  ANSYS's product family features open, flexible architecture for easy integration.

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Ansys Inc (ANSS US)

ANSYS Inc.: Financial & Price Forecasts

Engineering and software provider, Ansys delivered another decent result with a 21% increase in the top-line, driven by sturdy performance in the...

Baptista Research

Ansys vs. Cadence Design: Which Design Software Player Is A More Robust Investment? (12/2021)

In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the...

Baptista Research

Ansys Inc. - Investment Thesis

Engineering software provider, Ansys delivered a decent result with a 21% increase in the top-line driven by a strong performance in the high tech...

Baptista Research

Ansys Inc. - Investment Thesis

Ansys has reached the target price from our last report as the company was comfortably able to beat its financial guidance across all its key...

Baptista Research

U.S. Equity Strategy: Several Indicators Suggest a Pullback Likely

Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight...

Vermilion Research

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