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

<ul><li>HP Inc.’s Q2 2024 earnings were below par and net revenue was down 1%, the rate of decline slowed for the fourth straight quarter.</li><li>Personal Systems also returned to growth for the first time in eight quarters, indicating signs of market stabilization and solid execution.</li><li>Non-GAAP operating profit grew 2%, and non-GAAP EPS was up 4% year-over-year, slightly above the midpoint of the last quarter's guide.</li></ul>

HP Inc.’s Q2 2024 earnings were below par and net revenue was down 1%, the rate of decline slowed for the fourth straight quarter.Personal Systems also returned to growth for the first time in eight quarters, indicating signs of market stabilization and solid execution.Non-GAAP operating profit grew 2%, and non-GAAP EPS was up 4% year-over-year, slightly above the midpoint of the last quarter's guide.

HP Inc.: Dominance of Personal Systems & Print Business & Other Major Drivers

<ul><li>HP Inc.</li><li>reported its first quarter results in the fiscal year 2024 with a solid performance, managing through a volatile external environment that continues to impact demand across the industry, as noted by the CEO, Enrique Lores.</li><li>The net revenue was slightly down by 4% year-over-year, marking the third straight quarter of slowing revenue decline, which indicates possible market stabilization.</li></ul>

HP Inc.reported its first quarter results in the fiscal year 2024 with a solid performance, managing through a volatile external environment that continues to impact demand across the industry, as noted by the CEO, Enrique Lores.The net revenue was slightly down by 4% year-over-year, marking the third straight quarter of slowing revenue decline, which indicates possible market stabilization.

HP Inc: Can Artificial Intelligence (AI) Enabled PCs Drive Phenomenal Growth In The Future? - Major Drivers

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>We hosted a conference call with Elan Microelectronics management; We view the company as a Structural Long position for the AI PC upgrade cycle.</li>
<li>From the company's perspective, significant impact from AI PC demand will come but not until 4Q24E or 1H25E. However, supply chain excess inventory improved and prepping for upcycle.</li>
<li>An estimated 90% of AI PC models launched at CES 2024 use Elan's products in their design; Elan well positioned for the upcycle and entrenching its position. Maintain Structural Long.</li>
</ul>


We hosted a conference call with Elan Microelectronics management; We view the company as a Structural Long position for the AI PC upgrade cycle.
From the company's perspective, significant impact from AI PC demand will come but not until 4Q24E or 1H25E. However, supply chain excess inventory improved and prepping for upcycle.
An estimated 90% of AI PC models launched at CES 2024 use Elan's products in their design; Elan well positioned for the upcycle and entrenching its position. Maintain Structural Long.


TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

<ul><li>HP Inc. has demonstrated resilience in a challenging macroeconomic environment, showcasing solid performance across key financial metrics, including revenue, non-GAAP operating margin, EPS, and free cash flow.</li><li>This strategy focuses on reducing structural costs while investing in key growth areas, aiming for long-term fundamental improvements in cost structure and prudent expense management.</li><li>HP Inc. 's focus on profitable growth, especially in higher-value market segments, and commitment to returning 100% of free cash flow to shareholders highlight its strategic priorities.</li></ul>

HP Inc. has demonstrated resilience in a challenging macroeconomic environment, showcasing solid performance across key financial metrics, including revenue, non-GAAP operating margin, EPS, and free cash flow.This strategy focuses on reducing structural costs while investing in key growth areas, aiming for long-term fundamental improvements in cost structure and prudent expense management.HP Inc. 's focus on profitable growth, especially in higher-value market segments, and commitment to returning 100% of free cash flow to shareholders highlight its strategic priorities.

HP Inc.: The Dark Horse of Tech Stocks? - Major Drivers

<ul>
<li>Branded PC makers' shares have been mostly lower in April, however Intel and Microsoft developments are providing strong signals for a future PC upgrade cycle into AI PCs.</li>
<li>Over 60% of Fortune 500 companies are now using Microsoft's CoPilot AI assistant; Intel expects the industry to exceed its prior forecast for AI PC shipments in 2024E.</li>
<li>CoPilot is the killer app that will trigger a global enterprise PC upgrade cycle; The next generation of CoPilot will be an edge AI app that will require powerful hardware.</li>
</ul>


Branded PC makers' shares have been mostly lower in April, however Intel and Microsoft developments are providing strong signals for a future PC upgrade cycle into AI PCs.
Over 60% of Fortune 500 companies are now using Microsoft's CoPilot AI assistant; Intel expects the industry to exceed its prior forecast for AI PC shipments in 2024E.
CoPilot is the killer app that will trigger a global enterprise PC upgrade cycle; The next generation of CoPilot will be an edge AI app that will require powerful hardware.


PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle

United States

HP Inc. provides imaging and printing systems, computing systems, mobile devices, solutions, and services for business and home. The Company offers products which includes laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. HP sells its products worldwide.

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Hewlett Packard Co (HPQ US)

HP Inc.: Dominance of Personal Systems & Print Business & Other Major Drivers

HP Inc.’s Q2 2024 earnings were below par and net revenue was down 1%, the rate of decline slowed for the fourth straight quarter. Personal...

Baptista Research

HP Inc: Can Artificial Intelligence (AI) Enabled PCs Drive Phenomenal Growth In The Future? - Major Drivers

HP Inc. reported its first quarter results in the fiscal year 2024 with a solid performance, managing through a volatile external environment that...

Baptista Research

TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...

Vincent Fernando, CFA

HP Inc.: The Dark Horse of Tech Stocks? - Major Drivers

HP Inc. has demonstrated resilience in a challenging macroeconomic environment, showcasing solid performance across key financial metrics,...

Baptista Research

PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle

CoPilot, as an edge AI app, will drive a global PC upgrade cycle with its next-gen version requiring advanced hardware.

Vincent Fernando, CFA

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HP Inc.: Dominance of Personal Systems & Print Business & Other Major Drivers

HP Inc.’s Q2 2024 earnings were below par and net revenue was down 1%, the rate of decline slowed for the fourth straight quarter. Personal...

Baptista Research

HP Inc: Can Artificial Intelligence (AI) Enabled PCs Drive Phenomenal Growth In The Future? - Major Drivers

HP Inc. reported its first quarter results in the fiscal year 2024 with a solid performance, managing through a volatile external environment that...

Baptista Research

TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

​Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...

Vincent Fernando, CFA

HP Inc.: The Dark Horse of Tech Stocks? - Major Drivers

HP Inc. has demonstrated resilience in a challenging macroeconomic environment, showcasing solid performance across key financial metrics,...

Baptista Research

PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle

​CoPilot, as an edge AI app, will drive a global PC upgrade cycle with its next-gen version requiring advanced hardware.

Vincent Fernando, CFA

Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...

CoPilot, as an edge AI app, will drive a global PC upgrade cycle with its next-gen version requiring advanced hardware.