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 Capital Markets

<ul><li>Block Inc. (formerly Square Inc. ) had an eventful 2021 especially after the acquisition of Afterpay.</li><li>The company has managed to find new ways to connect their Square and Cash App ecosystems.</li><li>We expect continued growth across Cash App and Square throughout 2022 as well.</li></ul>

Block Inc. (formerly Square Inc. ) had an eventful 2021 especially after the acquisition of Afterpay.The company has managed to find new ways to connect their Square and Cash App ecosystems.We expect continued growth across Cash App and Square throughout 2022 as well.

Block Inc. (formerly Square Inc.): Financial & Price Forecasts

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>We see limited upside potential for <a href="https://www.smartkarma.com/entities/upstart-holdings-inc" target="_blank" data-smartkarma-citation="entities:29727:1" rel="noopener">Upstart Holdings Inc (UPST US)</a>  shares after reporting a record 200%+ YoY revenue growth rate in CY’21.   </li>
<li>Our calculations suggest insiders sold ~$1.5 billion worth of Upstart shares since August 2020, including Third Point, CEO of Upstart Holdings, and management of the fintech company. </li>
<li>Rising interest rates and tightening of credit markets may negatively impact revenue, keeping in mind that <a href="https://www.smartkarma.com/entities/upstart-holdings-inc" target="_blank" data-smartkarma-citation="entities:29727:1" rel="noopener">Upstart Holdings Inc (UPST US)</a>  primarily facilitates unsecured personal loans on the platform.</li>
</ul>


We see limited upside potential for Upstart Holdings Inc (UPST US)  shares after reporting a record 200%+ YoY revenue growth rate in CY’21.   
Our calculations suggest insiders sold ~$1.5 billion worth of Upstart shares since August 2020, including Third Point, CEO of Upstart Holdings, and management of the fintech company. 
Rising interest rates and tightening of credit markets may negatively impact revenue, keeping in mind that Upstart Holdings Inc (UPST US)  primarily facilitates unsecured personal loans on the platform.


Upstart Holdings: Slowdown In Revenue Growth And Tightening Of Credit Markets

Value Investing

Vladimir Dimitrov, CFA

<ul>
<li>Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors.</li>
<li>In spite of certain narratives, rotation to value stocks has little to do with Visa's recent outperformance.</li>
<li>The impact of short-term headwinds will likely remain muted due to Visa's increased penetration in certain markets and new flow channels.</li>
</ul>


Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors.
In spite of certain narratives, rotation to value stocks has little to do with Visa's recent outperformance.
The impact of short-term headwinds will likely remain muted due to Visa's increased penetration in certain markets and new flow channels.


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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> will offer a fixed exchange ratio of 0.98 Zip shares per <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> share, implying a 22% premium to Sezzle’s last close price. </li>
<li>The completion conditions include Zip and Sezzle shareholder approval along with regulatory approval. The exchange ratio is fair compared to historical ranges, in our view.</li>
<li>Considering the weak investor sentiment of the BNPL sector and ongoing sector consolidation, the proposed merger is a good solution for both sets of shareholders.  </li>
</ul>



Zip Co Ltd (Z1P AU) will offer a fixed exchange ratio of 0.98 Zip shares per Sezzle Inc (SZL AU) share, implying a 22% premium to Sezzle’s last close price. 
The completion conditions include Zip and Sezzle shareholder approval along with regulatory approval. The exchange ratio is fair compared to historical ranges, in our view.
Considering the weak investor sentiment of the BNPL sector and ongoing sector consolidation, the proposed merger is a good solution for both sets of shareholders.  


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.</li>
<li>We have also covered the Oct 2020 placements in our earlier note, <a href="https://www.smartkarma.com/insights/zip-placement-sorry-it-s-not-you-it-s-me" target="_blank" data-smartkarma-citation="insights:44380" rel="noopener">Zip Placement - Sorry, It's Not You. It's Me</a>. </li>
<li>In this note we will talk about the recent developments and run the deal through our ECM framework.</li>
</ul>


ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.
We have also covered the Oct 2020 placements in our earlier note, Zip Placement - Sorry, It's Not You. It's Me. 
In this note we will talk about the recent developments and run the deal through our ECM framework.


ZIP Acquisition and Unlinked Placement - Too Many Things at Once

United States

Block, Inc. operates as a financial services and digital payments company. The Company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Block also provides financial and marketing services.

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Block (SQ US)

Block Inc. (formerly Square Inc.): Financial & Price Forecasts

Block Inc. (formerly Square Inc. ) had an eventful 2021 especially after the acquisition of Afterpay. The company has managed to find new ways to...

Baptista Research

Upstart Holdings: Slowdown In Revenue Growth And Tightening Of Credit Markets

We think investors should be cautious on Upstart shares due to the slowdown in revenue growth rates and the tightening of credit markets

Andrei Zakharov

Visa: Don't Mind The Disruptors

Well-established digital payment platforms, such as Visa, are enjoying renewed interest from long-term investors. In spite of certain narratives,...

Vladimir Dimitrov, CFA

Zip Finally Lobs an Offer for Sezzle

Zip will offer a fixed exchange ratio of 0.98 Zip shares per Sezzle share, implying A$2.17 per Sezzle share. The exchange ratio is fair compared to...

Arun George

ZIP Acquisition and Unlinked Placement - Too Many Things at Once

ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a...

Sumeet Singh

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