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>Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating conditions.</li><li>The company experienced an 8% decline in net sales compared to the same period last year, driven primarily by a 6% reduction in volume due to declining restaurant traffic both domestically and internationally.</li><li>In the backdrop of a competitive environment, Lamb Weston faced incremental customer share losses and exit from lower-margin business in EMEA, further impacting sales and volume negatively.</li></ul>

Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating conditions.The company experienced an 8% decline in net sales compared to the same period last year, driven primarily by a 6% reduction in volume due to declining restaurant traffic both domestically and internationally.In the backdrop of a competitive environment, Lamb Weston faced incremental customer share losses and exit from lower-margin business in EMEA, further impacting sales and volume negatively.

Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! - Major Drivers

<ul><li>In a move that has caught the attention of the investment community, activist investor Jana Partners is reportedly pushing for a sale of Lamb Weston (NYSE: LW), a prominent player in the frozen potato product market.</li><li>This development comes on the back of Lamb Weston’s recent earnings report, which delivered solid sales figures but highlighted challenges in global restaurant traffic and manufacturing costs.</li><li>The company’s resilience, despite a difficult operating environment, has placed it in a unique position, making it an attractive acquisition target for both strategic buyers and private equity firms.</li></ul>

In a move that has caught the attention of the investment community, activist investor Jana Partners is reportedly pushing for a sale of Lamb Weston (NYSE: LW), a prominent player in the frozen potato product market.This development comes on the back of Lamb Weston’s recent earnings report, which delivered solid sales figures but highlighted challenges in global restaurant traffic and manufacturing costs.The company’s resilience, despite a difficult operating environment, has placed it in a unique position, making it an attractive acquisition target for both strategic buyers and private equity firms.

Is Lamb Weston the Next Big Acquisition? Why Jana Partners is Pushing for a Sale

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Key points (machine generated)<ul><li>Lamb Weston's stock price has dropped by about 30% since July 2023 due to market concerns regarding the potential impact of GLP-1s on consumer consumption and caloric intake behavior, particularly in the greasy fried foods category.</li><li>Despite this decline, experts believe it is an overreaction and a good opportunity for investors. Lamb Weston is considered a high-quality business with strong pricing power and long-term earnings growth potential.</li><li>The stock decline is attributed to misunderstandings, including reports of volume decline and concerns about demand and pricing power, which are not accurately reflecting the company's true prospects.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)Lamb Weston's stock price has dropped by about 30% since July 2023 due to market concerns regarding the potential impact of GLP-1s on consumer consumption and caloric intake behavior, particularly in the greasy fried foods category.Despite this decline, experts believe it is an overreaction and a good opportunity for investors. Lamb Weston is considered a high-quality business with strong pricing power and long-term earnings growth potential.The stock decline is attributed to misunderstandings, including reports of volume decline and concerns about demand and pricing power, which are not accurately reflecting the company's true prospects.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lamb Weston Holdings Inc (LW) - Friday, Oct 27, 2023

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

<ul>
<li>Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.</li>
<li>As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.</li>
<li>Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples</li>
</ul>


Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.
As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.
Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples


S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

<ul>
<li>
We are downgrading Consumer Discretionary to market weight as retail breakdowns and continued weakness in homebuilders and major autos has led to price and RS uptrend violations for the Sector. Reduce exposure.</li>
<li>
Many major indexes testing support. We cover the S&amp;P 500, Dow, small-caps, PHLX Semiconductor, international developed and emerging markets, which are all at logical support areas. While we expect to see these indexes firm up at current levels based on YTD trends, the potential for breakdowns is not far off.</li>
<li>
Big picture trends. The cyclicals  vs. staples ratio remains elevated and has not broken down. Something similar can be said of the growth vs. value ratio, where the uptrend remains intact.</li>
<li>
In today’s report we highlight attractive Groups and stocks within Energy, Consumer Staples, Materials, and Utilities.</li>
</ul>



We are downgrading Consumer Discretionary to market weight as retail breakdowns and continued weakness in homebuilders and major autos has led to price and RS uptrend violations for the Sector. Reduce exposure.

Many major indexes testing support. We cover the S&amp;P 500, Dow, small-caps, PHLX Semiconductor, international developed and emerging markets, which are all at logical support areas. While we expect to see these indexes firm up at current levels based on YTD trends, the potential for breakdowns is not far off.

Big picture trends. The cyclicals  vs. staples ratio remains elevated and has not broken down. Something similar can be said of the growth vs. value ratio, where the uptrend remains intact.

In today’s report we highlight attractive Groups and stocks within Energy, Consumer Staples, Materials, and Utilities.


Yield Surge Tests Equities; Downgrading Discretionary

United States

Lamb Weston Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, produces and supplies frozen potato products. Lamb Weston Holdings offers fries, oven roasted potatoes, puffs, chips, slices, and prepared potato products.

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Lamb Weston Holdings (LW US)

Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! - Major Drivers

Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating...

Baptista Research

Is Lamb Weston the Next Big Acquisition? Why Jana Partners is Pushing for a Sale

In a move that has caught the attention of the investment community, activist investor Jana Partners is reportedly pushing for a sale of Lamb...

Baptista Research

Lamb Weston Holdings Inc (LW) - Friday, Oct 27, 2023

Lamb Weston's stock price has dropped by about 30% since July 2023 due to market concerns regarding the potential impact of GLP-1s on consumer...

Value Investors Club

S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

Last week (3/21) we discussed the potential for a 2-5% rally to the 1.5-month downtrend on the $SPX, or even the 4165-4200 range, which we noted...

Vermilion Research

Yield Surge Tests Equities; Downgrading Discretionary

We are downgrading Consumer Discretionary to market weight as retail breakdowns and continued weakness in homebuilders and major autos has led to...

Vermilion Research

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