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>Medpace's financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in the clinical contract research organization (CRO) industry.</li><li>The company reported that revenues reached $511 million for the quarter, marking a significant 17.7% increase on a year-over year basis.</li><li>This positive trajectory can be attributed to healthy demand for Medpace’s clinical research services, as demonstrated by the growth in ending backlog which stood at approximately $2.9 billion—an increase of 18.2% compared to the previous year.</li></ul>

Medpace's financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in the clinical contract research organization (CRO) industry.The company reported that revenues reached $511 million for the quarter, marking a significant 17.7% increase on a year-over year basis.This positive trajectory can be attributed to healthy demand for Medpace’s clinical research services, as demonstrated by the growth in ending backlog which stood at approximately $2.9 billion—an increase of 18.2% compared to the previous year.

Medpace Holdings Inc.: Will The Improved Bookings Environment Last? - Major Drivers

<ul><li>Medpace Holdings, a leading full-service clinical contract research organization (CRO), reported robust results for the fourth quarter and full year of 2023.</li><li>The company's revenue increased 26.5% year-over-year in Q4, reaching $498.4 million.</li><li>For the full year, revenue stood at $1.89 billion, a rise of 29.2% from 2022.</li></ul>

Medpace Holdings, a leading full-service clinical contract research organization (CRO), reported robust results for the fourth quarter and full year of 2023.The company's revenue increased 26.5% year-over-year in Q4, reaching $498.4 million.For the full year, revenue stood at $1.89 billion, a rise of 29.2% from 2022.

Medpace Holdings Inc.: Initiation Of Coverage - Does It Have A Sustainable Competitive Advantage? - Major Drivers

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The 1,350p offer for <a href="https://www.smartkarma.com/entities/ergomed-plc" target="_blank" data-smartkarma-citation="entities:23411:1" rel="noopener">Ergomed Plc (ERGO LN)</a> (28% premium, 18.9x EV/Fwd NTM EBITDA using IBES estimated) seems optically attractive considering share underperformance, and in line with closest peer Medpace at 19.06x.</li>
<li>Nevertheless there'd be synergies available to a trade buyer and other than 18% from the Founder, there aren't any other irrevocables, which indicates the offer price is far from knock-out.</li>
<li>I set my TP at 1,350p. Spread turned negative last week, now 0.59%/1.71% (gross/annualised, assuming settlement by mid-February). I would be long considering there's still time for a competing offer.</li>
</ul>


The 1,350p offer for Ergomed Plc (ERGO LN) (28% premium, 18.9x EV/Fwd NTM EBITDA using IBES estimated) seems optically attractive considering share underperformance, and in line with closest peer Medpace at 19.06x.
Nevertheless there'd be synergies available to a trade buyer and other than 18% from the Founder, there aren't any other irrevocables, which indicates the offer price is far from knock-out.
I set my TP at 1,350p. Spread turned negative last week, now 0.59%/1.71% (gross/annualised, assuming settlement by mid-February). I would be long considering there's still time for a competing offer.


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>We remain concerned about the prospect for additional weakness for the broad market due to deterioration in several metrics that we often turn to to get a pulse on the market. At the same time, several cyclical areas of the market have bounced off of logical support while RS has been unable to break out to new highs for defensive Sectors. Absent bearish price inflections in the cyclicals and new RS highs for defensive areas of the market, equities are likely to remain in a state of purgatory.  In today’s report we highlight attractive Groups and stocks within Consumer Staples, Health Care, and Utilities.</p>

We remain concerned about the prospect for additional weakness for the broad market due to deterioration in several metrics that we often turn to to get a pulse on the market. At the same time, several cyclical areas of the market have bounced off of logical support while RS has been unable to break out to new highs for defensive Sectors. Absent bearish price inflections in the cyclicals and new RS highs for defensive areas of the market, equities are likely to remain in a state of purgatory.  In today’s report we highlight attractive Groups and stocks within Consumer Staples, Health Care, and Utilities.

U.S. Equity Strategy: Market Still Susceptible

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Frontage Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/27754" target="_blank" data-smartkarma-citation="entities:27754:1">Frontage Holdings (1521 HK)</a> has launched its Hong Kong IPO at a price range of HK$2.55-3.20 per share to raise HK$1.27-1.60 billion ($160-200 million). Three cornerstone investors, Hillhouse Capital, Greenwoods Asset Management and OrbiMed Advisors, intend to purchase $90 million of the offering.</p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/frontage-holdings-ipo-preview-an-uncertain-transition" target="_blank">our IPO initiation note</a>, we cautioned that while the market backdrop is favourable, Frontage is a business in the middle of an uncertain transition. Overall, with the caveat that Frontage has yet to prove that it can reaccelerate organic revenue growth, we believe that the risk-reward profile is favourable at the low-end of IPO price range. </p></div>

Frontage Holdings (1521 HK) has launched its Hong Kong IPO at a price range of HK$2.55-3.20 per share to raise HK$1.27-1.60 billion ($160-200 million). Three cornerstone investors, Hillhouse Capital, Greenwoods Asset Management and OrbiMed Advisors, intend to purchase $90 million of the offering.In our IPO initiation note, we cautioned that while the market backdrop is favourable, Frontage is a business in the middle of an uncertain transition. Overall, with the caveat that Frontage has yet to prove that it can reaccelerate organic revenue growth, we believe that the risk-reward profile is favourable at the low-end of IPO price range. 

Frontage Holdings IPO: Risk-Reward Is Favourable at the Low-End of Price Range

United States

Charles River Laboratories International, Inc. provides research tools and support services that enable drug discovery and development.  The Company provides the animal research models required in research and development for new drugs, devices, and therapies.  Charles River's customers include pharmaceutical and biotechnology companies, hospitals, and academic institutions.

Bio-Techne Corp develops, manufactures and sells biotechnology products and clinical diagnostic controls. The Company specializes in proteins, cytokines, growth factors, immunoassays and small molecules.

Bruker Corporation designs, manufactures, and markets proprietary  life science systems based on spectrometry technology platforms.  The Company  also sells a range of field analytical systems for substance detection and  pathogen identification.  Bruker develops life science and advanced materials  research tools based on X-ray technology.

Bio-Rad Laboratories, Inc. is a multinational manufacturer and distributor of life science research products, clinical diagnostics, and analytical instrumentation.  The Company's products and systems separate complex chemical and biological materials, as well as identify, analyze, and purify their components.

QIAGEN N.V. is a global provider of Sample to Insight solutions to transform biological materials into valuable molecular insights. The Company provides its workflows to customers in Molecular Diagnostics (human healthcare), Applied Testing (forensics, veterinary testing and food safety), Pharma (pharmaceutical and biotechnology companies) and Academia (life sciences research).

Avantor, Inc. manufactures and distributes chemicals, reagents, and laboratory supplies. The Company offers amino acids, silicones, bioreagents, denaturants, gas, solvents, stains, dyes, and minerals. Avantor serves biopharma, healthcare, education and government, advanced technologies, life sciences, and applied materials industries worldwide.

Illumina, Inc. develops, manufactures and markets integrated systems for the large scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that currently serve the sequencing, genotyping and gene expression markets for genomic research centers, pharmaceutical companies, academic institutions and biotechnology companies.

Azenta, Inc. provides life sciences solutions. The Company offers cold-chain sample management solutions and genomic services across areas such as drug development, clinical research, and advanced cell therapies. Azenta serves pharmaceutical, biotech, academic, and healthcare institutions worldwide.

Syneos Health, Inc. operates as a biopharmaceutical solutions organization. The Company offers therapeutic expertise, bioanalytics solutions, clinical development services, medical devices, diagnostics, and commercialization. Syneos Health serves patients worldwide.

NeoGenomics, Inc. operates a network of clinical laboratories that specializes in cancer genetics diagnostic testing services. The Company's services include cytogenetics, fluorescence in-situhybridization (FISH), flow cytometry, morphology, anatomic pathology, and molecular genetic testing. NeoGenomics serves pathologists, oncologists, urologists, and hospitals.

Divi's Laboratories Ltd. manufactures pharmaceutical products which include generic drugs and their intermediates. The Company also undertakes contract research activities for other pharmaceutical companies.

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

Hangzhou Tigermed Consulting Company Limited provides professional clinical research services for domestic and foreign pharmaceutical and health-related research and development. The Company's main services include clinical trial technology services, data management, and statistical analysis.

Hangzhou Tigermed Consulting (A) (300347 CH)

Bachem Holding AG specializes in the development and manufacture of peptides and oligonucleotides. The Company provides products for research, clinical development and commercial application to pharmaceutical and biotechnology companies. Bachem Holding serves customers worldwide.

Pharmaron Beijing Co., Ltd. engages in discovery, development, and manufacturing spectrum for small molecule drugs, cell therapies, and gene therapies as well as providing testing services for medical devices and clinic research. The Company offers laboratory, clinical development, chemistry manufactory and control, and other services. Pharmaron Beijing conducts businesses based in China.

Genscript Biotech Corp is biotech service company. The Company provides life science services and products and pre-clinical drug development services.

Gerresheimer AG develops and produces specialty products made of glass and plastic.  The Company produces containers for a variety of substances and medicines.

MorphoSys AG operates as a biopharmaceutical company. The Company discovers and develops differentiated therapies and medicines for the patients suffering from cancer, inflammations, and autoimmune diseases. MorphoSys serves customers in Germany.

Siegfried Holding AG provides development services and the production of active pharmaceutical ingredients (API), intermediates, controlled & standard substances, and complex formulations. The Company operates in Switzerland, Malta and the United States.

Tecan Group AG develops, manufactures and distributes laboratory automation components and systems. The Company produces robotic sample processors, stand-alone separation and detection devices, laser scanners, integrated systems, and pumps and valves for high precision liquid handling. The products are mainly used by research and diagnostic laboratories.

Medpace Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides cardiovascular, hematology, oncology, neurology, pediatrics, nephrology, and diagnostic services. Medpace Holdings serves patients worldwide.

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Medpace Holdings Inc (MEDP US)

Medpace Holdings Inc.: Will The Improved Bookings Environment Last? - Major Drivers

Medpace's financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in...

Baptista Research

Medpace Holdings Inc.: Initiation Of Coverage - Does It Have A Sustainable Competitive Advantage? - Major Drivers

Medpace Holdings, a leading full-service clinical contract research organization (CRO), reported robust results for the fourth quarter and full...

Baptista Research

No Danger in Being Long

Spread turned negative and widened in the last week. I believe the risk/reward of adding at or below 1,340p is more favourable considering that...

Jesus Rodriguez Aguilar

U.S. Equity Strategy: Market Still Susceptible

We remain concerned about the prospect for additional weakness for the broad market due to deterioration in several metrics that we often turn to...

Vermilion Research

Frontage Holdings IPO: Risk-Reward Is Favourable at the Low-End of Price Range

Frontage Holdings (1521 HK) has launched its Hong Kong IPO at a price range of HK$2.55-3.20 per share to raise HK$1.27-1.60 billion ($160-200...

Arun George

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