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>Viavi’s result for the second quarter of 2023 performed better than Wall Street expectations as the company delivered an all-around beat, driven by NSE performance aided by stabilization in service provider demand and spending.</li><li>The company’s OSP business increased year over year and performed within the forecast.</li><li>NSE decreased sequentially and year over year due to weaker fiber and wireless lab product demand.</li></ul>

Viavi’s result for the second quarter of 2023 performed better than Wall Street expectations as the company delivered an all-around beat, driven by NSE performance aided by stabilization in service provider demand and spending.The company’s OSP business increased year over year and performed within the forecast.NSE decreased sequentially and year over year due to weaker fiber and wireless lab product demand.

<ul><li>Viavi had a strong performance in the final quarter of its fiscal year 2022 and the company delivered an all-around beat.</li><li>For fiscal Q4 2022, the SE business's revenue was constant from year to year.</li><li>Strong NE bookings during the fiscal fourth quarter led to a seasonally stronger Q1 backlog and demand visibility.</li></ul>

Viavi had a strong performance in the final quarter of its fiscal year 2022 and the company delivered an all-around beat.For fiscal Q4 2022, the SE business's revenue was constant from year to year.Strong NE bookings during the fiscal fourth quarter led to a seasonally stronger Q1 backlog and demand visibility.

Viavi Solutions Inc.: The Jackson Labs Acquisition & Other Drivers

Credit

<ul><li>Viavi Solutions is a leading provider of network test solutions, monitoring and assurance solutions to the telecom industry, enterprises, network equipment manufacturers, Governments, and avionics corporations.</li><li>The North American service providers upgraded and expanded their networks with fibre which benefitted the company.</li><li>Its solutions for assurance and products for data centres have been experiencing significant growth.</li></ul>

Viavi Solutions is a leading provider of network test solutions, monitoring and assurance solutions to the telecom industry, enterprises, network equipment manufacturers, Governments, and avionics corporations.The North American service providers upgraded and expanded their networks with fibre which benefitted the company.Its solutions for assurance and products for data centres have been experiencing significant growth.

Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Capital Markets

<ul><li>This is our first report on Viavi Solutions, a major player within the network test solutions and monitoring space.</li><li>As North American service providers upgraded and expanded their networks with fibre, fibre grew by double-digit percentages from the same time the previous year.</li><li>We initiate coverage on Viavi Solutions with a ‘Hold’ rating with a revised target price.</li></ul>

This is our first report on Viavi Solutions, a major player within the network test solutions and monitoring space.As North American service providers upgraded and expanded their networks with fibre, fibre grew by double-digit percentages from the same time the previous year.We initiate coverage on Viavi Solutions with a ‘Hold’ rating with a revised target price.

Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Down nearly 30% since January 28, the shares are now selling at 17x management's EPS guidance for FY Mar-21 and 13x our EPS estimate for FY Mar-24, when management expects 5G-related sales and profits to peak.Premature concern over the next cyclical downturn appears to have been discounted. Delays to 5G roll-outs caused by the pandemic should also be in the price.Over the coming three years, sales should rise by more than 20% and operating profit by more than 30%, driven by 5G and growing economies of scale in the company's other businesses.Buy back in for the long term.

Down nearly 30% since January 28, the shares are now selling at 17x management's EPS guidance for FY Mar-21 and 13x our EPS estimate for FY Mar-24, when management expects 5G-related sales and profits to peak.Premature concern over the next cyclical downturn appears to have been discounted. Delays to 5G roll-outs caused by the pandemic should also be in the price.Over the coming three years, sales should rise by more than 20% and operating profit by more than 30%, driven by 5G and growing economies of scale in the company's other businesses.Buy back in for the long term.

Anritsu (6754 JP): 5G Business to Expand Until FY Mar-24

United States

Viavi Solutions Inc. provides network and service enabling solutions and optical products. The Company offers installation, commissioning, scripting, custom analytics, integration, business intelligence consulting, operational assistance, field and lab testing, technical training, maintenance, and support services. Viavi Solutions serves customers worldwide.

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Viavi Solutions (VIAV US)

Viavi Solutions: Major Drivers

Viavi’s result for the second quarter of 2023 performed better than Wall Street expectations as the company delivered an all-around beat, driven...

Baptista Research

Viavi Solutions Inc.: The Jackson Labs Acquisition & Other Drivers

Viavi had a strong performance in the final quarter of its fiscal year 2022 and the company delivered an all-around beat. For fiscal Q4 2022, the...

Baptista Research

Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Viavi Solutions is a leading provider of network test solutions, monitoring and assurance solutions to the telecom industry, enterprises, network...

Baptista Research

Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership

This is our first report on Viavi Solutions, a major player within the network test solutions and monitoring space. As North American service...

Baptista Research

Anritsu (6754 JP): 5G Business to Expand Until FY Mar-24

The shares have dropped 30% since the beginning of the year, discounting premature concern over 5G cycle, which should continue until FY Mar-24....

Scott Foster

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