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

Spectrum Brands Holdings, Inc / Equity Bottom-Up

<ul><li>Spectrum Brands Holdings reported its earnings for the third quarter of 2024, outlining both achievements and challenges.</li><li>The fashion in which the company is sustaining and advancing its interests despite prevalent economic and geopolitical hurdles reflects its strategic positioning and tactical adaptiveness.</li><li>Spectrum Brands commenced its earnings overview affirmatively, noting a net sales growth of 6% and an organic sales increase of 7.1% for the quarter.</li></ul>

Spectrum Brands Holdings reported its earnings for the third quarter of 2024, outlining both achievements and challenges.The fashion in which the company is sustaining and advancing its interests despite prevalent economic and geopolitical hurdles reflects its strategic positioning and tactical adaptiveness.Spectrum Brands commenced its earnings overview affirmatively, noting a net sales growth of 6% and an organic sales increase of 7.1% for the quarter.

Spectrum Brands Holdings: Will The Increased Advertising Spend & Marketing Initiatives Yield Results? - Major Drivers

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

<ul>
<li>SPB plans to spin-off its home &amp; personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home &amp; Garden business units.</li>
<li>The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories.  SPB (ex SpinCo) will be a higher-growth, higher margin business.</li>
<li>HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.</li>
</ul>


SPB plans to spin-off its home &amp; personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home &amp; Garden business units.
The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories.  SPB (ex SpinCo) will be a higher-growth, higher margin business.
HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.


Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

<ul><li>Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful performance.</li><li>The company, a diversified global consumer products giant, saw a slight decline in net sales by 1.5% which indicates some areas of softness within certain segments.</li><li>However, its strategic maneuvers and operational improvements across its three primary business units—Global Pet Care, Home & Personal Care, and Home & Garden—brought about noteworthy advancements, particularly in terms of gross margin and adjusted EBITDA growth.</li></ul>

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful performance.The company, a diversified global consumer products giant, saw a slight decline in net sales by 1.5% which indicates some areas of softness within certain segments.However, its strategic maneuvers and operational improvements across its three primary business units—Global Pet Care, Home & Personal Care, and Home & Garden—brought about noteworthy advancements, particularly in terms of gross margin and adjusted EBITDA growth.

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

<ul><li>The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's performance.</li><li>To begin with, net sales for the company were down by 3% for the first quarter, in-line with their prior expectations.</li><li>Factors such as a challenging macroeconomic environment, decreased demand in some of their business segments including Home & Personal Care and Global Pet Care, and a cautious approach by home center retailers, all contributed to this decline.</li></ul>

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's performance.To begin with, net sales for the company were down by 3% for the first quarter, in-line with their prior expectations.Factors such as a challenging macroeconomic environment, decreased demand in some of their business segments including Home & Personal Care and Global Pet Care, and a cautious approach by home center retailers, all contributed to this decline.

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

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

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and <a href="https://inews.hket.com/article/2896489/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%9C%9D%E9%9B%B2%E9%9B%86%E5%9C%986601%E6%9A%97%E7%9B%A4%E8%B7%8C2%E6%88%90%E3%80%80%E4%B8%80%E6%89%8B%E8%9D%95%E7%B4%841000%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -18% lower</a> at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48633" rel="noopener">Cheerwin Group IPO: Valuation Insights</a>, we noted that the IPO price range is resonable.</p></div><div><div><div class="content-highlight"><p>In many ways, the timing of Cheerwin's listing is unfortunate as <a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a>'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In Cheerwin Group IPO: Valuation Insights, we noted that the IPO price range is resonable.In many ways, the timing of Cheerwin's listing is unfortunate as Blue Moon Group Holdings (6993 HK)'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

United States

Spectrum Brands Holdings, Inc. is a global and diversified consumer products company and a supplier of consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn and garden and home pest control products, and personal insect repellents.

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Spectrum Brands Holdings, Inc (SPB US)

Spectrum Brands Holdings: Will The Increased Advertising Spend & Marketing Initiatives Yield Results? - Major Drivers

Spectrum Brands Holdings reported its earnings for the third quarter of 2024, outlining both achievements and challenges. The fashion in which the...

Baptista Research

Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...

GSBR Research

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful...

Baptista Research

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's...

Baptista Research

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

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52-week Range

Market Cap (USDm)

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Spectrum Brands Holdings: Will The Increased Advertising Spend & Marketing Initiatives Yield Results? - Major Drivers

Spectrum Brands Holdings reported its earnings for the third quarter of 2024, outlining both achievements and challenges. The fashion in which the...

Baptista Research

Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

​SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...

GSBR Research

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful...

Baptista Research

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's...

Baptista Research

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...