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>Visa Inc. recently reported its fiscal first quarter 2025 earnings, showcasing both strengths and areas for potential improvement.</li><li>Positively, Visa demonstrated robust revenue growth, marked by a 10% increase year-over-year, reaching $9.5 billion, with earnings per share rising by 14%.</li><li>Significant growth drivers included a 9% increase in payments volume and a 16% boost in cross-border volumes, excluding intra-Europe transactions.</li></ul>

Visa Inc. recently reported its fiscal first quarter 2025 earnings, showcasing both strengths and areas for potential improvement.Positively, Visa demonstrated robust revenue growth, marked by a 10% increase year-over-year, reaching $9.5 billion, with earnings per share rising by 14%.Significant growth drivers included a 9% increase in payments volume and a 16% boost in cross-border volumes, excluding intra-Europe transactions.

Visa Inc.: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond! - Major Drivers

<ul><li>Visa Inc. reported strong financial results for its fiscal fourth quarter and full year 2024, showcasing growth across multiple key performance metrics.</li><li>The company's net revenue for the fourth quarter was $9.6 billion, reflecting a 12% increase compared to the prior year, driven by growth in payments volume, cross-border volume, and processed transactions.</li><li>A notable highlight is the 8% year-over-year growth in global payments volume with international payments showing a 10% increase and cross-border volumes, excluding intra-Europe, rising 13%.</li></ul>

Visa Inc. reported strong financial results for its fiscal fourth quarter and full year 2024, showcasing growth across multiple key performance metrics.The company's net revenue for the fourth quarter was $9.6 billion, reflecting a 12% increase compared to the prior year, driven by growth in payments volume, cross-border volume, and processed transactions.A notable highlight is the 8% year-over-year growth in global payments volume with international payments showing a 10% increase and cross-border volumes, excluding intra-Europe, rising 13%.

Visa Inc’s Cross-Border Boom: Can It Continue Driving Its Global Revenue Growth? - Major Drivers

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Elliott Management has bought a $2B stake in PayPal and seeks cost cutting measures.</li>
<li>PayPal has started to take action through cost cutting, a new buyback, new organizational measures, and increased focus on revenue strategy.</li>
<li>The wild card that would get us more bullish is Elliott forcing a merger with Pinterest, which would yield a readymade Dan Schulman replacement in Bill Ready.</li>
</ul>


Elliott Management has bought a $2B stake in PayPal and seeks cost cutting measures.
PayPal has started to take action through cost cutting, a new buyback, new organizational measures, and increased focus on revenue strategy.
The wild card that would get us more bullish is Elliott forcing a merger with Pinterest, which would yield a readymade Dan Schulman replacement in Bill Ready.


PayPal: Elliott Sees Opportunity, So Do We

<ul><li>Visa Inc.'s fiscal third quarter of 2024 reveals a strong financial position, but also indicates room for improvement.</li><li>Net revenue was $8.9B, notching a 10% YoY increase and included a 12% YoY rise for EPS, indicating an increased level of profitability.</li><li>One of Visa's strongest areas this past quarter has been its focus on global client engagement, resulting in a 3-pt increase in their global Net Promoter Score (NPS) to 76.</li></ul>

Visa Inc.'s fiscal third quarter of 2024 reveals a strong financial position, but also indicates room for improvement.Net revenue was $8.9B, notching a 10% YoY increase and included a 12% YoY rise for EPS, indicating an increased level of profitability.One of Visa's strongest areas this past quarter has been its focus on global client engagement, resulting in a 3-pt increase in their global Net Promoter Score (NPS) to 76.

Visa Inc.: Consistent Strong Performance in Value-Added Services (VAS) & Other Major Drivers

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>We update Klarna’s and Stripe’s IPO valuations based on recent share transactions; Indian payments company Pine Labs is also reported to be looking to IPO</li>
<li>Our 2Q24 recommended shares performance was very mixed, with it being a mainly challenging quarter for long investors in payment companies</li>
<li>We retain Visa as a core holding and also keep PagSeguro and Shift4 as buys, replacing PayPal with European value play Nexi; we keep our sell rating on Affirm</li>
</ul>


We update Klarna’s and Stripe’s IPO valuations based on recent share transactions; Indian payments company Pine Labs is also reported to be looking to IPO
Our 2Q24 recommended shares performance was very mixed, with it being a mainly challenging quarter for long investors in payment companies
We retain Visa as a core holding and also keep PagSeguro and Shift4 as buys, replacing PayPal with European value play Nexi; we keep our sell rating on Affirm


Payment Companies – Updated Sector Overview and Potential IPOs

United States

Visa Inc. operates a retail electronic payments network and manages global financial services.  The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

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Visa (V US)

Visa Inc.: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond! - Major Drivers

Visa Inc. recently reported its fiscal first quarter 2025 earnings, showcasing both strengths and areas for potential improvement. Positively,...

Baptista Research

Visa Inc’s Cross-Border Boom: Can It Continue Driving Its Global Revenue Growth? - Major Drivers

Visa Inc. reported strong financial results for its fiscal fourth quarter and full year 2024, showcasing growth across multiple key performance...

Baptista Research

PayPal: Elliott Sees Opportunity, So Do We

We think Elliott's stake in PayPal and management's 4 pronged plan announced on last week's earnings has put the floor in on PYPL. Trading at an...

Aaron Gabin

Visa Inc.: Consistent Strong Performance in Value-Added Services (VAS) & Other Major Drivers

Visa Inc.'s fiscal third quarter of 2024 reveals a strong financial position, but also indicates room for improvement. Net revenue was $8.9B,...

Baptista Research

Payment Companies – Updated Sector Overview and Potential IPOs

Mixed 2Q24 shares performance, challenging for long investors in payment companies. Visa retained as core holding, with buys PagSeguro and Shift4;...

Victor Galliano

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