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 Bottom-Up

Credo Technology Group Holding / Equity Bottom-Up

<ul><li>Credo's fiscal 2024 earnings presented a blend of robust achievements and markers for future growth, tied along with inherent business risks associated with developing and scaling high-speed connectivity solutions.</li><li>The company highlighted record annual revenue alongside a notable uplift in revenue derived from AI-powered workloads, indicating successful alignment with leading-edge technological demands.</li><li>Revenue for fiscal year 2024 stood at $193 million, up by 5% year-over-year, with a marked improvement in non GAAP gross margins to 62.5%.</li></ul>

Credo's fiscal 2024 earnings presented a blend of robust achievements and markers for future growth, tied along with inherent business risks associated with developing and scaling high-speed connectivity solutions.The company highlighted record annual revenue alongside a notable uplift in revenue derived from AI-powered workloads, indicating successful alignment with leading-edge technological demands.Revenue for fiscal year 2024 stood at $193 million, up by 5% year-over-year, with a marked improvement in non GAAP gross margins to 62.5%.

Credo Technology Group: We Are Unsure Despite Their Expansion in Artificial Intelligence Applications! - Major Drivers

<ul><li>This is our first report on high-speed connectivity solutions provider, Credo.</li><li>The company reported Q3 FY24 earnings, with revenue at $53.1 million and non-GAAP gross margin at 62.2%.</li><li>Credo's results and future growth expectations are being fueled by the growing market for high-speed, energy-efficient connectivity solutions in data infrastructure.</li></ul>

This is our first report on high-speed connectivity solutions provider, Credo.The company reported Q3 FY24 earnings, with revenue at $53.1 million and non-GAAP gross margin at 62.2%.Credo's results and future growth expectations are being fueled by the growing market for high-speed, energy-efficient connectivity solutions in data infrastructure.

Credo Technology Group: Initiation Of Coverage - How Are They Adapting To The Artificial Intelligence (AI)-Triggered Market Shift? - Major Drivers

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

<ul><li>Google, Microsoft, and Facebook reported earnings.</li><li>Let’s discuss their capex plans and what that means for our new data center champion, Nvidia.</li><li>I think it’s pretty straightforward that Nvidia has revenue beats for the foreseeable future.</li></ul>

Google, Microsoft, and Facebook reported earnings.Let’s discuss their capex plans and what that means for our new data center champion, Nvidia.I think it’s pretty straightforward that Nvidia has revenue beats for the foreseeable future.

Google, Microsoft, Facebook and Nvidia: AI Spending Implications at the Hyperscalers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Astera Labs announced financial results for 1Q’FY24 in May. According to IPO prospectus, ~5.9M shares became eligible for sale following public release of earnings for the first quarter of FY24.</li>
<li>The high-growth semiconductor company filed form S-8 on May 8, 2024. The selling stockholders, including current employees and service providers, offered additional ~3M shares as early lock-up expired.</li>
<li>Astera Labs shares currently trade at rich multiples of ~37x EV/FY24E Revenue and ~25x EV/FY25E Revenue on my revised forecasts.</li>
</ul>


Astera Labs announced financial results for 1Q’FY24 in May. According to IPO prospectus, ~5.9M shares became eligible for sale following public release of earnings for the first quarter of FY24.
The high-growth semiconductor company filed form S-8 on May 8, 2024. The selling stockholders, including current employees and service providers, offered additional ~3M shares as early lock-up expired.
Astera Labs shares currently trade at rich multiples of ~37x EV/FY24E Revenue and ~25x EV/FY25E Revenue on my revised forecasts.


Astera Labs: 1Q’FY24 GAAP Net Loss Could Disappoint Investors, Selling Stockholders Offer ~3M Shares

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).</li>
<li>We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.</li>
<li>Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.</li>
</ul>


Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.


United States

Credo Technology Group Holding Ltd operates as a holding company. The Company, through its subsidiaries, provides connectivity solutions such as IP and chiplets, line cards, optical DSPs, and active electrical cables. Credo Technology Group Holding serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Credo Technology Group Holding (CRDO US)

Credo Technology Group: We Are Unsure Despite Their Expansion in Artificial Intelligence Applications! - Major Drivers

Credo's fiscal 2024 earnings presented a blend of robust achievements and markers for future growth, tied along with inherent business risks...

Baptista Research

Credo Technology Group: Initiation Of Coverage - How Are They Adapting To The Artificial Intelligence (AI)-Triggered Market Shift? - Major Drivers

This is our first report on high-speed connectivity solutions provider, Credo. The company reported Q3 FY24 earnings, with revenue at $53.1...

Baptista Research

Google, Microsoft, Facebook and Nvidia: AI Spending Implications at the Hyperscalers

Google, Microsoft, and Facebook reported earnings. Let’s discuss their capex plans and what that means for our new data center champion, Nvidia. I...

Fabricated Knowledge

Astera Labs: 1Q’FY24 GAAP Net Loss Could Disappoint Investors, Selling Stockholders Offer ~3M Shares

Astera Labs shares underperformed and fell ~24% in May: 1Q’FY24 GAAP net loss could disappoint investors and the selling stockholders may sell...

Andrei Zakharov

Astera Labs IPO Valuation Analysis

Our base case valuation of Astera Labs is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)