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

United Airlines Holdings / Equity Bottom-Up

<ul><li>During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.</li><li>The airline's 2023 performance was framed as a clear demonstration of its United Next plan's effectiveness, buoied by diversified revenue streams and robust operational metrics.</li><li>United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.</li></ul>

During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.The airline's 2023 performance was framed as a clear demonstration of its United Next plan's effectiveness, buoied by diversified revenue streams and robust operational metrics.United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? - Key Drivers

<ul><li>United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by 15.7% year-over-year.</li><li>Looking ahead to the fourth quarter, United expects total revenue to be up approximately 10.5% on increased capacity, driven by strong demand in Atlantic and Pacific routes.</li><li>United's prudent capacity planning and focus on cost management have positioned the company for sustainable growth.</li></ul>

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by 15.7% year-over-year.Looking ahead to the fourth quarter, United expects total revenue to be up approximately 10.5% on increased capacity, driven by strong demand in Atlantic and Pacific routes.United's prudent capacity planning and focus on cost management have positioned the company for sustainable growth.

<ul><li>United Airlines delivered an all-around beat in the most recent quarterly result.</li><li>The strategic initiatives, including aggressive pilot hiring, fleet expansion, and route optimization, have paid off and put United on a path toward delivering impressive earnings per share.</li><li>We give United Airlines Holdings a 'Buy' rating with a revised target price.</li></ul>

United Airlines delivered an all-around beat in the most recent quarterly result.The strategic initiatives, including aggressive pilot hiring, fleet expansion, and route optimization, have paid off and put United on a path toward delivering impressive earnings per share.We give United Airlines Holdings a 'Buy' rating with a revised target price.

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Thematic (Sector/Industry)

<ul>
<li>Alaska Air Flight 1282 had an in-flight blowout of its mid-aft door and interior sidewall; the aircraft returned and landed safely, and there were no injuries or fatalities  </li>
<li>The U.S. Federal Aviation Administration (FAA) has ordered a temporary grounding of the affected aircraft model, and we think other countries will follow suit soon   </li>
<li>These stocks will likely be under shorts attack on Monday: Boeing (BA US), Alaska Air (ALK US), Ryanair (RYA ID) and United Airlines (UAL US)</li>
</ul>


Alaska Air Flight 1282 had an in-flight blowout of its mid-aft door and interior sidewall; the aircraft returned and landed safely, and there were no injuries or fatalities  
The U.S. Federal Aviation Administration (FAA) has ordered a temporary grounding of the affected aircraft model, and we think other countries will follow suit soon   
These stocks will likely be under shorts attack on Monday: Boeing (BA US), Alaska Air (ALK US), Ryanair (RYA ID) and United Airlines (UAL US)


Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

HK/China Equity Long-Short

Osbert Tang, CFA

Cathay Pacific Airways / Equity Bottom-Up

<ul>
<li>With more foreign countries being granted visa-free visits to China, <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a> will benefit from more transfer traffic via Hong Kong.</li>
<li>Recovery is decent with passenger traffic rising 37.5% in 5M24. CX's capacity already returned to 80% of pre-pandemic in 2Q24, and this will reach 100% in 1Q25. </li>
<li>YTD, CX is still a laggard relative to many global airlines. Its P/B valuation is not stretched at 0.8x, given ROE of 11% over the next 3 years.  </li>
</ul>


With more foreign countries being granted visa-free visits to China, Cathay Pacific Airways (293 HK) will benefit from more transfer traffic via Hong Kong.
Recovery is decent with passenger traffic rising 37.5% in 5M24. CX's capacity already returned to 80% of pre-pandemic in 2Q24, and this will reach 100% in 1Q25. 
YTD, CX is still a laggard relative to many global airlines. Its P/B valuation is not stretched at 0.8x, given ROE of 11% over the next 3 years.  


Cathay Pacific (293 HK): Multiple Positive Developments

United States

United Airlines Holdings Inc is an airline holding company.  The Company owns and operates airlines that transports persons, property and mail throughout the United States and abroad.

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United Airlines Holdings (UAL US)

United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? - Key Drivers

During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments...

Baptista Research

United Airlines: European Routes

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by...

Baptista Research

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

United Airlines delivered an all-around beat in the most recent quarterly result. The strategic initiatives, including aggressive pilot hiring,...

Baptista Research

Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...

Mohshin Aziz

Cathay Pacific (293 HK): Multiple Positive Developments

As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? - Key Drivers

During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments...

Baptista Research

United Airlines: European Routes

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by...

Baptista Research

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

United Airlines delivered an all-around beat in the most recent quarterly result. The strategic initiatives, including aggressive pilot hiring,...

Baptista Research

Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

​Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...

Mohshin Aziz

Cathay Pacific (293 HK): Multiple Positive Developments

​As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...

Osbert Tang, CFA

Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...

As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...