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>Westlake Corporation delivered a commendable performance in the second quarter of 2024, particularly in its Housing and Infrastructure Products (HIP) segment, which achieved record quarterly results.</li><li>The company reported increased net sales of $3.2 billion, an EBITDA of $744 million, and a net income of $313 million or $2.40 per share.</li><li>These figures represent improvements over the results of the second quarter of 2023.</li></ul>

Westlake Corporation delivered a commendable performance in the second quarter of 2024, particularly in its Housing and Infrastructure Products (HIP) segment, which achieved record quarterly results.The company reported increased net sales of $3.2 billion, an EBITDA of $744 million, and a net income of $313 million or $2.40 per share.These figures represent improvements over the results of the second quarter of 2023.

Westlake Chemical Corporation: 4 Major Growth Drivers & 4 Biggest Challenges In Its Path! - Financial Forecasts

<ul><li>Throughout the first quarter of 2024, Westlake experienced a net increase in sales, net income, and EBITDA. These improvements were attributed to higher sales volumes and lower feedstock fuel and power costs, indicative of the company's enhanced operational efficiency.</li><li>The firm's strategic focus on cost reduction also bore fruit, as approximately $35 million was achieved towards its targeted 2024 cost savings of $125 million-$150 million.</li><li>Westlake's HIP segment experienced resilience in North American residential construction and infrastructure activity, resulting in a 14% YoY growth in sales volumes.</li></ul>

Throughout the first quarter of 2024, Westlake experienced a net increase in sales, net income, and EBITDA. These improvements were attributed to higher sales volumes and lower feedstock fuel and power costs, indicative of the company's enhanced operational efficiency.The firm's strategic focus on cost reduction also bore fruit, as approximately $35 million was achieved towards its targeted 2024 cost savings of $125 million-$150 million.Westlake's HIP segment experienced resilience in North American residential construction and infrastructure activity, resulting in a 14% YoY growth in sales volumes.

Westlake Chemical Corporation: A Story Of Business Expansion through Mergers and Acquisitions! - Major Drivers

<ul><li>This is our first report on chemicals player, Westlake Corporation.</li><li>The company's fourth quarter and full year 2023 results present a mixed picture.</li><li>While there are significant positives, like record income from operation and an increase in sales volume, there are also notable downsides, such as a sharp decline in profitability in the European base epoxy business.</li></ul>

This is our first report on chemicals player, Westlake Corporation.The company's fourth quarter and full year 2023 results present a mixed picture.While there are significant positives, like record income from operation and an increase in sales volume, there are also notable downsides, such as a sharp decline in profitability in the European base epoxy business.

Westlake Corporation: Initiation Of Coverage - Positive Caustic Soda Outlook & Other Major Drivers

US-EU Index Rebalances / Quantitative Researcher, Ortex

Dimitris Ioannidis

US-EU Index Rebalances / Quantitative Researcher

Global Financial Data and Analytics Platform

Ortex

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Event-Driven

<ul>
<li>Index Committee's discretion decreases the predictability of index changes. Even when a company passes all eligibility criteria and thresholds, it might still not be selected.</li>
<li>Understanding triggers for index changes, types of additions/deletions and selection patterns, narrows down the pool of candidates and increases conviction of forecasts.</li>
<li>
<a href="https://www.smartkarma.com/entities/dell-technologies-inc" target="_blank" data-smartkarma-citation="entities:32189:1" rel="noopener">Dell Technologies (DELL US)</a> is currently the main candidate to be added by transition to the S&amp;P 500 in September 2024 Quarterly Rebalance.</li>
</ul>


Index Committee's discretion decreases the predictability of index changes. Even when a company passes all eligibility criteria and thresholds, it might still not be selected.
Understanding triggers for index changes, types of additions/deletions and selection patterns, narrows down the pool of candidates and increases conviction of forecasts.

Dell Technologies (DELL US) is currently the main candidate to be added by transition to the S&amp;P 500 in September 2024 Quarterly Rebalance.


S&P 500 / S&P 1500: Deriving Forecasts & First Prediction for September

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>Atkore's key products retained their unusually high prices last quarter, resulting in another strong quarter and raised guidance.</li>
<li>But key PVC prices are starting to weaken with the resumption of production in the US Gulf Coast.  Prices will fall much further.</li>
<li>Record high margins will contract meaningfully.  Estimates and valuations continue to be unrealistic leading us to maintain our short.</li>
</ul>


Atkore's key products retained their unusually high prices last quarter, resulting in another strong quarter and raised guidance.
But key PVC prices are starting to weaken with the resumption of production in the US Gulf Coast.  Prices will fall much further.
Record high margins will contract meaningfully.  Estimates and valuations continue to be unrealistic leading us to maintain our short.


United States

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and fabricated products.  The Company serves a range of consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction.

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Westlake Chemical (WLK US)

Westlake Chemical Corporation: 4 Major Growth Drivers & 4 Biggest Challenges In Its Path! - Financial Forecasts

Westlake Corporation delivered a commendable performance in the second quarter of 2024, particularly in its Housing and Infrastructure Products...

Baptista Research

Westlake Chemical Corporation: A Story Of Business Expansion through Mergers and Acquisitions! - Major Drivers

Throughout the first quarter of 2024, Westlake experienced a net increase in sales, net income, and EBITDA. These improvements were attributed to...

Baptista Research

Westlake Corporation: Initiation Of Coverage - Positive Caustic Soda Outlook & Other Major Drivers

This is our first report on chemicals player, Westlake Corporation. The company's fourth quarter and full year 2023 results present a mixed...

Baptista Research

S&P 500 / S&P 1500: Deriving Forecasts & First Prediction for September

S&P Index Committee's discretion reduces predictability of index changes. Identifying patterns and types of changes, narrows down the addition...

Dimitris Ioannidis

Atkore Inc (ATKR): Stay Short

An Atkore short provides great opportunity created by a spike in product prices which will be resolved over the coming quarters. Estimates and...

Eric Fernandez, CFA

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Market Cap (USDm)

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Westlake Chemical Corporation: 4 Major Growth Drivers & 4 Biggest Challenges In Its Path! - Financial Forecasts

Westlake Corporation delivered a commendable performance in the second quarter of 2024, particularly in its Housing and Infrastructure Products...

Baptista Research

Westlake Chemical Corporation: A Story Of Business Expansion through Mergers and Acquisitions! - Major Drivers

Throughout the first quarter of 2024, Westlake experienced a net increase in sales, net income, and EBITDA. These improvements were attributed to...

Baptista Research

Westlake Corporation: Initiation Of Coverage - Positive Caustic Soda Outlook & Other Major Drivers

This is our first report on chemicals player, Westlake Corporation. The company's fourth quarter and full year 2023 results present a mixed...

Baptista Research

S&P 500 / S&P 1500: Deriving Forecasts & First Prediction for September

S&P ​Index Committee's discretion reduces predictability of index changes. Identifying patterns and types of changes, narrows down the addition...

Dimitris Ioannidis

Atkore Inc (ATKR): Stay Short

An Atkore short provides great opportunity created by a spike in product prices which will be resolved over the coming quarters. Estimates and...

Eric Fernandez, CFA

S&P Index Committee's discretion reduces predictability of index changes. Identifying patterns and types of changes, narrows down the addition...