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

Summit Materials Inc Cl A / Equity Bottom-Up

<ul><li>In Q3 2024, Summit Materials, Inc. presented a detailed analysis of its performance, addressing the impacts of challenging conditions, including severe weather, operational obstacles, and strategic initiatives.</li><li>Despite these hurdles, the company achieved record quarterly and trailing 12-month adjusted EBITDA margins at 28.3% and 24.3%, respectively, underscoring strong execution and cost management efforts.</li><li>This success was driven by Summit’s focus on high-quality operations and efficient resource allocation.</li></ul>

In Q3 2024, Summit Materials, Inc. presented a detailed analysis of its performance, addressing the impacts of challenging conditions, including severe weather, operational obstacles, and strategic initiatives.Despite these hurdles, the company achieved record quarterly and trailing 12-month adjusted EBITDA margins at 28.3% and 24.3%, respectively, underscoring strong execution and cost management efforts.This success was driven by Summit’s focus on high-quality operations and efficient resource allocation.

Summit Materials Inc.: How Are They Managing Input Cost Inflation and Hedging Strategies? - Major Drivers

<ul><li>Quikrete, a dominant force in North American concrete and cement mixes, has approached Summit Materials (NYSE:SUM), with a market value surpassing $7 billion, for a potential acquisition.</li><li>The discussions, while in preliminary stages, reflect significant momentum in the building materials industry, driven by expanding government infrastructure spending and a competitive market landscape.</li><li>Quikrete’s interest comes at a pivotal time: both companies have recently grown through strategic mergers and acquisitions.</li></ul>

Quikrete, a dominant force in North American concrete and cement mixes, has approached Summit Materials (NYSE:SUM), with a market value surpassing $7 billion, for a potential acquisition.The discussions, while in preliminary stages, reflect significant momentum in the building materials industry, driven by expanding government infrastructure spending and a competitive market landscape.Quikrete’s interest comes at a pivotal time: both companies have recently grown through strategic mergers and acquisitions.

Why Quikrete's Bid for Summit Materials Could Be a Game-Changer in the Building Materials Industry!

<ul><li>Summit Materials has consistently demonstrated a focused approach toward operational excellence and strategic acquisitions, contributing to robust financial performance during the second quarter of 2024, despite challenging external conditions.</li><li>The integration of Argos USA and other strategic acquisitions has played a pivotal role, enhancing Summit Materials' foothold in high-growth markets and fortifying its balance sheet, reinforcing its ability to navigate through economic cycles with increased resilience.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Summit Materials has consistently demonstrated a focused approach toward operational excellence and strategic acquisitions, contributing to robust financial performance during the second quarter of 2024, despite challenging external conditions.The integration of Argos USA and other strategic acquisitions has played a pivotal role, enhancing Summit Materials' foothold in high-growth markets and fortifying its balance sheet, reinforcing its ability to navigate through economic cycles with increased resilience.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Summit Materials: How Are They Dealing With Market Volatility in Cement and Aggregates & Other Challenges? - Major Drivers

<ul><li>Summit Materials Inc. marked the beginning of 2024 on a robust note, showing early progress across all sectors, including safety.</li><li>An integration with Argos USA has been effectively transitioned and synergy realization is ahead of the planned schedule, predicting at least $40 million in synergies this year.</li><li>A solid execution on pricing and operational improvements also resulted in better than anticipated results in the first quarter.</li></ul>

Summit Materials Inc. marked the beginning of 2024 on a robust note, showing early progress across all sectors, including safety.An integration with Argos USA has been effectively transitioned and synergy realization is ahead of the planned schedule, predicting at least $40 million in synergies this year.A solid execution on pricing and operational improvements also resulted in better than anticipated results in the first quarter.

Summit Materials: Initiation Of Coverage - Cement Pricing Showing Positive Signs But Will This Last? - 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>Our outlook remains bullish following the S&amp;P 500's multi-month base breakout above 5670, alongside constructive market dynamics; the path of least resistance is higher.</li>
<li>We have discussed for the past two weeks (since our 10/22/24 Compass) how we would treat any pre-election pullback as a buying opportunity, and we are finally getting a pullback.</li>
<li>We expect SPX support at 5600-5670, and will remain bullish as long as 5600 support holds. Starting as early as today/tomorrow, we expect a strong end-of-year rally extending into early-2025</li>
</ul>


Our outlook remains bullish following the S&amp;P 500's multi-month base breakout above 5670, alongside constructive market dynamics; the path of least resistance is higher.
We have discussed for the past two weeks (since our 10/22/24 Compass) how we would treat any pre-election pullback as a buying opportunity, and we are finally getting a pullback.
We expect SPX support at 5600-5670, and will remain bullish as long as 5600 support holds. Starting as early as today/tomorrow, we expect a strong end-of-year rally extending into early-2025


Buy the Pullback; Expecting Significant End of Year Rally to Start as Soon as Today or Tomorrow

United States

Summit Materials, Inc. manufactures cement and concrete products. The Company produces cement, ready mix products which includes blocks, pipes, bricks, walls, and girders.

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Summit Materials Inc Cl A (SUM US)

Summit Materials Inc.: How Are They Managing Input Cost Inflation and Hedging Strategies? - Major Drivers

In Q3 2024, Summit Materials, Inc. presented a detailed analysis of its performance, addressing the impacts of challenging conditions, including...

Baptista Research

Why Quikrete's Bid for Summit Materials Could Be a Game-Changer in the Building Materials Industry!

Quikrete, a dominant force in North American concrete and cement mixes, has approached Summit Materials (NYSE:SUM), with a market value surpassing...

Baptista Research

Summit Materials: How Are They Dealing With Market Volatility in Cement and Aggregates & Other Challenges? - Major Drivers

Summit Materials has consistently demonstrated a focused approach toward operational excellence and strategic acquisitions, contributing to robust...

Baptista Research

Summit Materials: Initiation Of Coverage - Cement Pricing Showing Positive Signs But Will This Last? - Major Drivers

Summit Materials Inc. marked the beginning of 2024 on a robust note, showing early progress across all sectors, including safety. An integration...

Baptista Research

Buy the Pullback; Expecting Significant End of Year Rally to Start as Soon as Today or Tomorrow

Buy the Pullback $SPX $QQQ $IWM $IJH $VXF; Expecting Significant End of Year Rally to Start as Soon as Today or Tomorrow as market dynamics to...

Vermilion Research

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