Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on Monday.</li><li>We believe 2024, with a full compliment of unique, value-added brands which leverage Starco's aerosol and marketing infrastructure in hand, and a laser focus on adding key categories and new relationships, is shaping up as another year of material progress for Starco.</li><li>We believe there are also continued margin expansion opportunities from both economies of scale and the company's manufacturing expertise.</li></ul>

We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on Monday.We believe 2024, with a full compliment of unique, value-added brands which leverage Starco's aerosol and marketing infrastructure in hand, and a laser focus on adding key categories and new relationships, is shaping up as another year of material progress for Starco.We believe there are also continued margin expansion opportunities from both economies of scale and the company's manufacturing expertise.

elf Beauty Inc - STCB: 4Q Preview; Shooting Higher in 2024; Reiterate Buy, $0.25 PT

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>This is our first report on cosmetics player, e.l.f Beauty.</li><li>The company's third quarter 2022 earnings call ended with the company experiencing significant growth across the board.</li><li>CEO, Tarang Amin highlighted that net sales increased by 85%, gross margin by nearly 350 basis points and adjusted EBITDA by 61%, compared to the previous year.</li></ul>

This is our first report on cosmetics player, e.l.f Beauty.The company's third quarter 2022 earnings call ended with the company experiencing significant growth across the board.CEO, Tarang Amin highlighted that net sales increased by 85%, gross margin by nearly 350 basis points and adjusted EBITDA by 61%, compared to the previous year.

e.l.f. Beauty Inc.: Initiation Of Coverage - The 4 Fundamental Aspects Fueling Its Growth Uncovered! - Major Drivers

<ul><li>We are reiterating our Buy rating and $0.25 price target for Starco Brands after the company announced basically inline preliminary 2023 results and provided initial 2024 guidance for Adjusted EBITDA which bracketed our projection; as such, we are tweaking higher both our 2023 and 2034 Adjusted EBITDA projections.</li><li>We believe Starco is ideally positioned to register material top and bottom line growth in 2024 (and beyond) and believe management has remained conservative on multiple levels in their guidance.</li><li>We continue to view Starco as ideally positioned to lever their unique characteristics in the packaged goods space to drive consistent top and bottom line growth, and we reiterate our Buy rating and $0.25 price target for STCB.</li></ul>

We are reiterating our Buy rating and $0.25 price target for Starco Brands after the company announced basically inline preliminary 2023 results and provided initial 2024 guidance for Adjusted EBITDA which bracketed our projection; as such, we are tweaking higher both our 2023 and 2034 Adjusted EBITDA projections.We believe Starco is ideally positioned to register material top and bottom line growth in 2024 (and beyond) and believe management has remained conservative on multiple levels in their guidance.We continue to view Starco as ideally positioned to lever their unique characteristics in the packaged goods space to drive consistent top and bottom line growth, and we reiterate our Buy rating and $0.25 price target for STCB.

STCB: Setting Up for Further 2024 Growth; Reiterate Buy Rating and $0.25 PT

<ul><li>We are initiating coverage of Starco Brands, Inc. ("Starco" or the "Company"), an emerging owner and marketer of branded consumer goods, with a Buy rating and price target of $0.25, or 26X our December 2024 Adjusted EBITDA.</li><li>Starco's stable of brands includes: Art of Sport body and skincare products, Skylar hypoallergenic fragrance and beauty products; Soylent plant-based food products, Whipshots vodka infused whipped cream aerosols and Winona butter flavored popcorn spray.</li><li>As such, we view STCB as a rapidly growing owner of highly differentiated brands, with the business model to register consistent and strong overall top and EBITDA returns and are initiating coverage of STCB with a Buy rating and $0.25 price target.</li></ul>

We are initiating coverage of Starco Brands, Inc. ("Starco" or the "Company"), an emerging owner and marketer of branded consumer goods, with a Buy rating and price target of $0.25, or 26X our December 2024 Adjusted EBITDA.Starco's stable of brands includes: Art of Sport body and skincare products, Skylar hypoallergenic fragrance and beauty products; Soylent plant-based food products, Whipshots vodka infused whipped cream aerosols and Winona butter flavored popcorn spray.As such, we view STCB as a rapidly growing owner of highly differentiated brands, with the business model to register consistent and strong overall top and EBITDA returns and are initiating coverage of STCB with a Buy rating and $0.25 price target.

STCB: Initiating Coverage of Starco Brands with a Buy Rating and $0.25 PT

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Concurrent with its <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0429/2024042905713.pdf" target="_blank" rel="noopener">HK$34/share VGO</a>, <strong><a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a></strong>'s disinterested shareholders <em>may</em> be entitled to a share scrip alternative. IF afforded, up to 5% of shares out can participate.</li>
<li>The big unknown is whether you receive shares of the levered-up Bidco, at some as yet undetermined scrip ratio; or keep shares of L’Occitane as-is.</li>
<li>To trigger the rollover option, 10% of disinterested shareholders need to express interest by the 15th May (a Hong Kong holiday btw). A deadline without details. </li>
</ul>


Concurrent with its HK$34/share VGO, L'Occitane (973 HK)'s disinterested shareholders may be entitled to a share scrip alternative. IF afforded, up to 5% of shares out can participate.
The big unknown is whether you receive shares of the levered-up Bidco, at some as yet undetermined scrip ratio; or keep shares of L’Occitane as-is.
To trigger the rollover option, 10% of disinterested shareholders need to express interest by the 15th May (a Hong Kong holiday btw). A deadline without details. 


L'Occitane (973 HK): The Rollover Option, And Alternate Listing Valuations

United States

e.l.f. Beauty, Inc. operates as a cosmetic company. The Company offers beauty products for eyes, lips, and face. e.l.f. Beauty provides eyeliners, lipsticks, lip care and brushes, powder, and skin care products.

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elf Beauty Inc (ELF US)

elf Beauty Inc - STCB: 4Q Preview; Shooting Higher in 2024; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on...

Small Cap Consumer Research

e.l.f. Beauty Inc.: Initiation Of Coverage - The 4 Fundamental Aspects Fueling Its Growth Uncovered! - Major Drivers

This is our first report on cosmetics player, e.l.f Beauty. The company's third quarter 2022 earnings call ended with the company experiencing...

Baptista Research

STCB: Setting Up for Further 2024 Growth; Reiterate Buy Rating and $0.25 PT

We are reiterating our Buy rating and $0.25 price target for Starco Brands after the company announced basically inline preliminary 2023 results...

Small Cap Consumer Research

STCB: Initiating Coverage of Starco Brands with a Buy Rating and $0.25 PT

We are initiating coverage of Starco Brands, Inc. ("Starco" or the "Company"), an emerging owner and marketer of branded consumer goods, with a...

Small Cap Consumer Research

L'Occitane (973 HK): The Rollover Option, And Alternate Listing Valuations

If you are an arbitrageur, I'd be buying here. If you a LO, at a 5.4% gross yield, hold for completion. If you are willing to hold unlisted scrip,...

David Blennerhassett

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