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>A combination of strong demand growth, portfolio diversification, and strategic expansion has helped NextEra Energy post solid financial results for the first quarter of 2024.</li><li>The company reported an 8.3% year-over-year increase in adjusted earnings per share, driven largely by the performance of its Florida Power & Light Company (FPL) and Energy Resources segments.</li><li>FPL's earnings per share increased $0.04 year-over-year, the primary driver being a growth of approximately 11.5% in the company's regulatory capital year-over-year.</li></ul>

A combination of strong demand growth, portfolio diversification, and strategic expansion has helped NextEra Energy post solid financial results for the first quarter of 2024.The company reported an 8.3% year-over-year increase in adjusted earnings per share, driven largely by the performance of its Florida Power & Light Company (FPL) and Energy Resources segments.FPL's earnings per share increased $0.04 year-over-year, the primary driver being a growth of approximately 11.5% in the company's regulatory capital year-over-year.

NextEra Energy Inc.: Initiation of Coverage - A Blend of Stability and Growth in Renewable Energy! - Major Drivers

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>While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500</li>
<li>Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap</li>
<li>4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.</li>
</ul>


While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500
Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap
4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.


Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Energy Transition | AI | Shifting World Order, Mint Finance

Pranay Yadav

Energy Transition | AI | Shifting World Order

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>Higher for longer rate regime makes it difficult for NextEra Energy Partners to raise debt to fund high growth forcing a reduction in growth forecasts.</li>
<li>Markets have reacted sharply to slashed forecasts with shares of NEP (-52%) &amp; NEE (-22%). Growth is expected to remain lower in the future.</li>
<li>NEE has performed markedly better than NEP. This is reflected by analyst price targets. However, NEE’s long-term growth story has stumbled raising investor concerns.</li>
</ul>


Higher for longer rate regime makes it difficult for NextEra Energy Partners to raise debt to fund high growth forcing a reduction in growth forecasts.
Markets have reacted sharply to slashed forecasts with shares of NEP (-52%) &amp; NEE (-22%). Growth is expected to remain lower in the future.
NEE has performed markedly better than NEP. This is reflected by analyst price targets. However, NEE’s long-term growth story has stumbled raising investor concerns.


NEE & NEP Selloff Prompted by Higher for Longer Rates Sentiment

<ul>
<li>A 100-year-old firm, Next Era Energy is America's largest utility firm and the world's largest renewable energy producer commanding a market cap of USD 136.6B.</li>
<li>Significant capex into Next Era Energy Resources combined with the benefits of the Inflation Reduction Act to drive stock outperformance.</li>
<li>Downside exposure remains from idiosyncratic risks, weather shocks and an economic recovery which warrants risk management considerations.</li>
</ul>


A 100-year-old firm, Next Era Energy is America's largest utility firm and the world's largest renewable energy producer commanding a market cap of USD 136.6B.
Significant capex into Next Era Energy Resources combined with the benefits of the Inflation Reduction Act to drive stock outperformance.
Downside exposure remains from idiosyncratic risks, weather shocks and an economic recovery which warrants risk management considerations.


Next Era Energy: Investments into Clean & Green Energy, and the IRA, to Drive Outperformance

Top 10 Mega Caps | Artificial Intelligence, Mint Finance

Uttkarsh Kohli

Top 10 Mega Caps | Artificial Intelligence

First Trust NASDAQ Clean Edge / Equity Bottom-Up

<ul>
<li>AI advancements will increase data center power demand by 160% by 2030, consuming 8% of U.S. electricity.</li>
<li>A single ChatGPT query uses 2.9 watt-hours of electricity, compared to 0.3 watt-hours for a Google search.</li>
<li>2 of the 5 top performing stocks year-to-date in the S&amp;P 500 are utility companies Vistra Corp and Constellation Energy. Utility sector has gained 6.7% in 2024. </li>
</ul>


AI advancements will increase data center power demand by 160% by 2030, consuming 8% of U.S. electricity.
A single ChatGPT query uses 2.9 watt-hours of electricity, compared to 0.3 watt-hours for a Google search.
2 of the 5 top performing stocks year-to-date in the S&amp;P 500 are utility companies Vistra Corp and Constellation Energy. Utility sector has gained 6.7% in 2024. 


AI Surge Increases Power Consumption Leading to Energy Shifts

United States

Xcel Energy, Inc. provides electric and natural gas services.  The Company offers a variety of energy-related services, including generation, transmission, and distribution of electricity and natural gas throughout the United States. Xcel utilities serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin.

Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets.  The Company manages a portfolio of natural gas and electric supply, delivery, and trading businesses in the United States and Latin America.

Exelon Corporation is a utility services holding company. The Company, through its subsidiaries, distributes electricity to customers in Illinois and Pennsylvania. Exelon also distributes gas to customers in the Philadelphia area as well as operates nuclear power plants in states that include Pennsylvania and New Jersey.

PG&E Corporation is a holding company that holds interests in energy based businesses.  The Company's holdings include a public utility operating in northern and central California that provides electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation, and storage.

The Southern Company is a public utility holding company. The Company, through its subsidiaries, generates, wholesales, and retails electricity in the southeastern United States. The Company also offers wireless telecommunications services, and provides businesses with two-way radio, telephone, paging, and Internet access services as well as wholesales fiber optic solutions.

American Electric Power Company, Inc.(AEP)is a public utility holding company. The Company provides electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers. AEP serves portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

Eversource Energy is a public utility holding company. The Company, through its subsidiaries, provides retail electric service to customers in Connecticut, New Hampshire, and western Massachusetts.  Eversource Energy also distributes natural gas throughout Connecticut.

FirstEnergy Corp. is a public utility holding company. The Company's subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, exploration and production of oil and natural gas, transmission and marketing of natural gas, and energy management and other energy-related services.

Entergy Corporation is an integrated energy company that is primarily focused on electric power production and retail electric distribution operations. The Company delivers electricity to utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy also owns and operates nuclear plants in the northern United States

Edison International, through its subsidiaries, develops, acquires, owns, and operates electric power generation facilities worldwide.  The Company also provides capital and financial services for energy and infrastructure projects, as well as manages and sells real estate projects.  Additionally, Edison provides integrated energy services, utility outsourcing, and consumer products.

Power Grid Corporation of India Limited has been established by the Government of India as the central transmission utility of India. The mandate for the corporation is establishment and operation of EHV. AC & HVDC transmission lines, sub-stations, load dispatch centers and communications facilities throughout India.

Power Grid Corporation Of India (PWGR IN)

Enel SpA is a multinational power company and an integrated operator in the electricity and gas sectors, with a special focus on  Europe and Latin America. The company is active in the generation and distribution of energy from conventional and renewable sources. It also offers integrated solutions for electricity and gas products.

Iberdrola S.A. generates, distributes, trades, and markets electricity in the United Kingdom, United States, Spain, Portugal, and Latin America.  The Company specializes in clean energy and more specifically wind power.

Electricite de France (EDF) produces, transmits, distributes, imports and exports electricity.  The Company, using nuclear power, coal and gas, provides electricity for French energy consumers.

Enel SpA operates as a multinational power company and an integrated player in the global power, gas, and renewables markets. The Company produces energy and distributes electricity for business and household end users globally. Enel manages wind, solar, geothermal, and hydropower plants in Europe, the Americas, Africa, Asia, and Oceania.

Iberdrola Sociedad Anonima generates, distributes, trades, and markets electricity in the United Kingdom, the United States, Spain, Portugal, and Latin America. The Company specializes in clean energy including wind power, solar and hydroelectric, smart grids, energy storage, and green hydrogen.

CLP Holdings Limited provides vertically-integrated electricity supply in Hong Kong, conducts energy generation and retailing in Australia, and owns power generation assets in China, India, South-east Asia and Taiwan. The Company's power sources include coal, gas, nuclear and renewable energy.

Endesa S.A. is active in the generation, transmission, distribution, and commercialization of electricity in Spain, Portugal, and North Africa. The company is also a major operator in the natural gas market and offers other services related to the energy business.

EnBW Energie Baden-Wuerttemberg AG is a full service energy company that provides electricity, , gas as well as energy and environmental services. The Company's environmental services include waste disposal and recycling.

SSE PLC generates, transmits, distributes and supplies electricity to industrial, commercial and domestic customers in the United Kingdom and Ireland. The Company also stores and distributes natural gas, and operates a telecommunications network that offers bandwidth and capacity to companies, public sector organizations, Internet service providers, and others.

NextEra Energy, Inc. provides sustainable energy generation and distribution services. The Company generates electricity through wind, solar, and natural gas. Through its subsidiaries, NextEra Energy also operates multiple commercial nuclear power units.

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Nextera Energy (NEE US)

NextEra Energy Inc.: Initiation of Coverage - A Blend of Stability and Growth in Renewable Energy! - Major Drivers

A combination of strong demand growth, portfolio diversification, and strategic expansion has helped NextEra Energy post solid financial results...

Baptista Research

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Shift Exposure From Growth to Value; Downgrading Tech to market weight $XLK; Upgrading Industrials $XLI to Overweight; Upgrading Utilities $XLU to...

Vermilion Research

NEE & NEP Selloff Prompted by Higher for Longer Rates Sentiment

NextEra Energy Partners struggles to raise debt for high growth due to prolonged low interest rates, leading to reduced growth forecasts and...

Mint Finance

Next Era Energy: Investments into Clean & Green Energy, and the IRA, to Drive Outperformance

Investment in renewables and the benefits of IRA support NEE, but downside risks persist from various factors. Market metrics and analyst targets...

Mint Finance

AI Surge Increases Power Consumption Leading to Energy Shifts

AI is a power guzzler. A ChatGPT query uses 2.9 watt-hours, versus 0.3 for a Google search. Rising energy demand puts clean energy and grid...

Mint Finance

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52-week Range

Market Cap (USDm)

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NextEra Energy Inc.: Initiation of Coverage - A Blend of Stability and Growth in Renewable Energy! - Major Drivers

A combination of strong demand growth, portfolio diversification, and strategic expansion has helped NextEra Energy post solid financial results...

Baptista Research

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Shift Exposure From Growth to Value; Downgrading Tech to market weight $XLK; Upgrading Industrials $XLI to Overweight; Upgrading Utilities $XLU to...

Vermilion Research

NEE & NEP Selloff Prompted by Higher for Longer Rates Sentiment

​NextEra Energy Partners struggles to raise debt for high growth due to prolonged low interest rates, leading to reduced growth forecasts and...

Mint Finance

Next Era Energy: Investments into Clean & Green Energy, and the IRA, to Drive Outperformance

​Investment in renewables and the benefits of IRA support NEE, but downside risks persist from various factors. Market metrics and analyst targets...

Mint Finance

AI Surge Increases Power Consumption Leading to Energy Shifts

AI is a power guzzler. A ChatGPT query uses 2.9 watt-hours, versus 0.3 for a Google search. Rising energy demand puts clean energy and grid...

Mint Finance

NextEra Energy Partners struggles to raise debt for high growth due to prolonged low interest rates, leading to reduced growth forecasts and...

Investment in renewables and the benefits of IRA support NEE, but downside risks persist from various factors. Market metrics and analyst targets...