Category

Daily Briefs

Apr 07
0

Daily Brief TMT/Internet: Kokusai Electric , Rubrik and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World
  • Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity

Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World

By Arun George

Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity

By Andrei Zakharov

  • Rubrik, a leading VC-backed security software company, filed for a long-awaited IPO in the United States, with Goldman Sachs, Citigroup, Barclays and Wells Fargo leading the offering. 
  • The technology company is focused on data protection and helps organizations to protect their data and recover it in case of cyberattacks.
  • Rubrik was founded by Bipul Sinha, Arvind Nithrakashyap, Arvind Jain and Soham Mazumdar, and backed by VC investors, including Lightspeed Venture Partners, Greylock Partners and Khosla Ventures.

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Apr 07
0

Daily Brief Industrials: Yaskawa Electric and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

By Scott Foster

  • The outlook for factory automation is improving with inventory clearance, the upturn in the semiconductor industry and an AI-enhanced response to the labor shortage.
  • Yaskawa’s margins should continue to rise with renewed growth in Robotics, efficiency gains and an upgraded product line. 
  • Valuation stretched at 30x EPS guidance for FY Feb-25, but current weakness looks like a long term buying opportunity.

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Apr 07
0

Daily Brief Financials: Affirm Holdings and more

By | Daily Briefs, Financials

In today’s briefing:

  • Affirm Holdings: Initiation Of Coverage – Will Its Strength in Unit Economics and Operating Efficiency Last? – Major Drivers

Affirm Holdings: Initiation Of Coverage – Will Its Strength in Unit Economics and Operating Efficiency Last? – Major Drivers

By Baptista Research

  • Affirm Holdings, Inc had a strong performance in its second quarter of fiscal 2024.
  • A sense of optimism pervaded the call, as the company’s Founder and CEO, Max Levchin, and CFO, Michael Linford, highlighted the impressive run of results, attributing it to the strength of business across their merchant base and favorable economic conditions.
  • 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.

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Apr 07
0

Daily Brief Health Care: Acadia Healthcare Co, Tenet Healthcare, Chemed Corp, Dentsply International, Elanco Animal Health , Fresenius Medical Care & , Globus Medical Inc A, Ionis Pharmaceuticals, Medpace Holdings Inc, Neurocrine Biosciences and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers
  • Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers
  • Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers
  • Fresenius Medical Care: Initiation Of Coverage – Innovation with AR in Dialysis Training & 4 Other Major Drivers
  • Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors
  • Ionis Pharmaceuticals Inc.: Initiation Of Coverage – Its New wholly-owned medicines and Independent launches Can Catalyze Growth? – Major Drivers
  • Medpace Holdings Inc.: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers
  • Neurocrine Biosciences Inc.: Initiation Of Coverage – Continued Investment & Growth for INGREZZA Paving The Way Forward? – Major Drivers

Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers

By Baptista Research

  • Acadia Healthcare delivered a robust financial performance for 2023, marked by a 12.2% annual revenue growth, 13.1% adjusted EBITDA growth, and 14.3% adjusted EPS growth compared to 2022.
  • In the fourth quarter, its same-facility revenue rose by 10.3% on the back of rate improvements and patient day growth.
  • Acadia also saw consistent improvement in its labor trends throughout 2023.

Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Tenet Healthcare’s Q4 2023 earnings indicated a strong performance, with net operating revenues of $20.5 billion, and consolidated adjusted EBITDA of $3.54 billion, which translates into an attractive 17.2% adjusted EBITDA margin.
  • The company has demonstrated its ability to maintain profitability while focusing on quality and innovation.
  • Yet, some challenges were also mentioned during the earnings call.

Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Chemed Corporation reported their fourth quarter 2023 earnings with continued improvement in their VITAS operational metrics, including a 7% increase in admissions over the prior year period and an average daily census of 1,918.
  • This is an 11% increase in comparison to the prior year and suggests that a hiring and retention program initiated in 2022 to remedy any potential worker turnover and expand clinical workforce capacity has been successful in maintaining VITAS’ operational performance.
  • 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.

DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers

By Baptista Research

  • Examining the fourth quarter 2023 earnings for Dentsply Sirona reveals an investment thesis that emphasizes the company’s successful strategies, robust performance and rigorous financial discipline, alongside ambitious future business growth targets and consistent value creation for its stakeholders.
  • Starting with the positives, Dentsply Sirona achieved over 2% organic sales growth for 2023, outperforming projections via growth in three of its four business segments.
  • Notably, its orthodontic business experienced double-digit growth with both Byte and SureSmile.

Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers

By Baptista Research

  • In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.
  • The strong performance in 2023 indicates that the company’s innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.
  • Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.

Fresenius Medical Care: Initiation Of Coverage – Innovation with AR in Dialysis Training & 4 Other Major Drivers

By Baptista Research

  • Fresenius Medical Care’s Q4 2023 earnings highlighted the progress made against their strategic plan that was set out a year prior.
  • The plan focused on significant structural, operational and cultural changes, with the operating model being transformed at the start of 2023.
  • This allowed the company to introduce a new financial report with increased transparency, which reflected a commitment to their operational turnaround initiatives that aided organic growth in both segments and improved operational performance.

Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors

By Baptista Research

  • Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
  • The strong performance includes four months of sales after its merger with NuVasive.
  • This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

Ionis Pharmaceuticals Inc.: Initiation Of Coverage – Its New wholly-owned medicines and Independent launches Can Catalyze Growth? – Major Drivers

By Baptista Research

  • Ionis Pharmaceuticals Inc. had a remarkable year in 2023, with significant advancements in their RNA targeting platform and a steady stream of upcoming independent medicines delivering directly to patients.
  • The company’s forward-looking stratagem involves expanding their technology and broadening its applicability to cater to patients’ needs.
  • 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.

Medpace Holdings Inc.: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers

By Baptista Research

  • Medpace Holdings, a leading full-service clinical contract research organization (CRO), reported robust results for the fourth quarter and full year of 2023.
  • The company’s revenue increased 26.5% year-over-year in Q4, reaching $498.4 million.
  • For the full year, revenue stood at $1.89 billion, a rise of 29.2% from 2022.

Neurocrine Biosciences Inc.: Initiation Of Coverage – Continued Investment & Growth for INGREZZA Paving The Way Forward? – Major Drivers

By Baptista Research

  • Neurocrine Biosciences Inc, a biopharmaceutical company specializing in neurologic, psychiatric, and endocrine related disorders, showed significant growth during its remarkable year of 2023.
  • According to Neurocrine’s executives, the firm’s performance reflected the ongoing progress and the successful execution of business strategies with nearly 30% year-over-year sales growth for its flagship product, INGREZZA, which is a drug indicated for the treatment of tardive dyskinesia in adults.
  • 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.

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Apr 07
0

Daily Brief Consumer: Rakuten, Boston Beer Company Inc A, Simply Good Foods Co and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: JSR, Austal, Rakuten, Hyundai Home Shopping, Hanmi Science
  • The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers
  • The Simply Good Foods Company: Initiation Of Coverage – Atkins Revitalization Plan

Last Week in Event SPACE: JSR, Austal, Rakuten, Hyundai Home Shopping, Hanmi Science

By David Blennerhassett

  • Murakami to tender stake in JSR Corp (4185 JP)? Maybe the “double arb”: i.e. short on swap, long on cash, will tender the cash, remain short the back end.
  • Austal Ltd (ASB AU) rejected (for now) Hanwha Ocean (042660 KS)‘s bid based on regulatory concerns.  Hanwha reckons these should not be an issue.
  • If you can tolerate owning the mobile biz, buy Rakuten (4755 JP) on dips. If not, avoid Rakuten Group and Rakuten Bank short-term; buy Rakuten Bank on larger dips.

The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers

By Baptista Research

  • The Boston Beer Company’s Fourth Quarter 2023 Earnings revealed an operational performance meeting the midpoint of their forecast, with depletions down by 6% for the year and gross margins achieving an improvement of 120 basis points.
  • However, net loss for the quarter indicated challenges, standing at $18.1 million, or $1.49 per diluted share.
  • 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.

The Simply Good Foods Company: Initiation Of Coverage – Atkins Revitalization Plan

By Baptista Research

  • The Simply Good Foods Company achieved financial results that were in line with their estimates for the fiscal first quarter that ended on November 25, 2023.
  • The company reported an increase in its net sales by 2.6% to $308.7 million, propelled by the continuous momentum from its Quest range.
  • The 40-basis point increase in the gross margin, which improved to 37.3%, was attributed mainly to lower ingredient and packaging costs.

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Apr 07
0

Most Read: Shenzhen New Industries Biomedical Engineering-A, ZOZO Inc, Li Auto , Hanwha Aerospace, Kokusai Electric , Hanmi Science, Citic Resources Holdings, JSR Corp, Talgo SA and more

By | Daily Briefs, Most Read

In today’s briefing:

  • CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows
  • Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up
  • HSTECH Index Rebalance Preview: Round-Trip Trade of US$1.5bn in June
  • Hanwha Aerospace: Spin Off of Semiconductor Equipment and Video Surveillance Units
  • Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World
  • Hanmi Science: If Talks With Mum and Sister Break Down, Then KKR May Provide a Partial Tender Offer
  • Citic Resource Holdings (1205.HK) – A Play on Oil and Coal Demand
  • (Mostly) Asia-Pac M&A: Austal, Best World, Isetan Singapore, Langham Hospitality, Azure, Genex Power
  • Japan Weekly | Stocks Lower but Global Economy Remains Strong
  • Ganz-Mavag/Talgo: Request for Offer Authorisation

CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows

By Brian Freitas

  • With 85% of the review period complete, we see 11 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) in June.
  • We estimate one-way turnover of 1.2% at the rebalance leading to a one-way trade of CNY 7.3bn (US$1bn). There are a lot of stocks with multiple days ADV to trade.
  • The potential adds have outperformed the potential deletes despite large flows from the National Team into ETFs tracking the CSI 300 Index. That support for the potential deletes will reverse.

Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up

By Brian Freitas

  • There were a few rebalance announcements in the last week and the SSE STAR50 (STAR50 INDEX) and STAR100 Index rebalances were implemented at the close on Friday.
  • There are a lot of rebalances that will be implemented at the close on the coming Thursday and Friday.
  • Another big week of inflows for onshore China ETFs with Central Huijin likely behind the big flows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX). 

HSTECH Index Rebalance Preview: Round-Trip Trade of US$1.5bn in June

By Brian Freitas

  • With no stocks in outright inclusion or deletion zone, we do not expect any constituent changes for the Hang Seng TECH Index (HSTECH INDEX) in June.
  • Capping changes will result in a one-way turnover of 5.3% leading to a round-trip trade of US$1.51bn.
  • Li Auto (2015 HK) is expected to be the largest buy in June following the stock being the largest sell at the March rebalance (also due to capping).

Hanwha Aerospace: Spin Off of Semiconductor Equipment and Video Surveillance Units

By Douglas Kim

  • On 5 April, Hanwha Aerospace (012450 KS) formally announced that it will spin off its semiconductor equipment and video surveillance units which contributed to about 16% of its revenue. 
  • We are Negative on Hanwha Aerospace mainly due to valuations. Its share price has risen so much in the past year that its valuations are no longer attractive.
  • Hanwha Aerospace is trading at premium valuation to Lockheed Martin on an EV/EBITDA basis. Despite its recent strong growth, Hanwha Aerospace is no Lockheed Martin. 

Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World

By Arun George

Hanmi Science: If Talks With Mum and Sister Break Down, Then KKR May Provide a Partial Tender Offer

By Douglas Kim

  • The 2024 AGM of Hanmi Science is over and the two Lim brothers have control of the company. Nonetheless, the fight for the control of Hanmi Science is not over.
  • There is an increasingly probable scenario where the KKR private equity firm gets involved, joining hands with the Lim brothers.
  • If mum and sister do not sell their shares (which seems to be the higher likely scenario), then KKR may issue a tender offer to the remaining minority shareholders.

Citic Resource Holdings (1205.HK) – A Play on Oil and Coal Demand

By Rikki Malik

  • One of a basket of Hong Kong commodity stocks we like
  • One off issues in 2023 which should reverse in 2024
  • Can also be viewed as  a tangential play on India’s industrial growth

(Mostly) Asia-Pac M&A: Austal, Best World, Isetan Singapore, Langham Hospitality, Azure, Genex Power

By David Blennerhassett

Japan Weekly | Stocks Lower but Global Economy Remains Strong

By Mark Chadwick

  • US stocks recovered on Friday after a blow-out US jobs report. However, US 10 year yields ended the week up 19bps at 4.4%
  • Japanese stocks sank for a second week as tech stocks came under selling pressure
  • The 10% move in Sumitomo Metal Mining on higher copper prices highlights strength in global economy and perhaps sign of renewed growth in China

Ganz-Mavag/Talgo: Request for Offer Authorisation

By Jesus Rodriguez Aguilar

  • Ganz Mavag, a public/private consortium, requests authorisation for its €5/share offer for 100% of Talgo SA (TLGO SM). It needs approvals from Spain and seven other EMEA regulators.
  • Yesterday’s close remains similar to the announcement date (7 March), gross spread of 11.3%, indicating uncertainty regarding timeline and development. The market is pricing a 48% probability of deal completion.
  • The Spanish Government will delay the authorization process. Vs. comparables and considering uncertainties regarding backlog execution, investing in the company seems somewhat risky. The risk/reward ratio is not particularly attractive.

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Apr 07
0

Daily Brief United States: Rubrik , Acadia Healthcare Co, Boston Beer Company Inc A, Tenet Healthcare, Chemed Corp, Dentsply International, Elanco Animal Health , Globus Medical Inc A, Graphic Packaging Holding Company, Ionis Pharmaceuticals and more

By | Daily Briefs, United States

In today’s briefing:

  • Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity
  • Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers
  • The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers
  • Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers
  • Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers
  • Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors
  • Graphic Packaging Holding Company: Initiation Of Coverage – These Are The 3 Biggest Challenges In Its Path! – Major Drivers
  • Ionis Pharmaceuticals Inc.: Initiation Of Coverage – Its New wholly-owned medicines and Independent launches Can Catalyze Growth? – Major Drivers

Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity

By Andrei Zakharov

  • Rubrik, a leading VC-backed security software company, filed for a long-awaited IPO in the United States, with Goldman Sachs, Citigroup, Barclays and Wells Fargo leading the offering. 
  • The technology company is focused on data protection and helps organizations to protect their data and recover it in case of cyberattacks.
  • Rubrik was founded by Bipul Sinha, Arvind Nithrakashyap, Arvind Jain and Soham Mazumdar, and backed by VC investors, including Lightspeed Venture Partners, Greylock Partners and Khosla Ventures.

Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers

By Baptista Research

  • Acadia Healthcare delivered a robust financial performance for 2023, marked by a 12.2% annual revenue growth, 13.1% adjusted EBITDA growth, and 14.3% adjusted EPS growth compared to 2022.
  • In the fourth quarter, its same-facility revenue rose by 10.3% on the back of rate improvements and patient day growth.
  • Acadia also saw consistent improvement in its labor trends throughout 2023.

The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers

By Baptista Research

  • The Boston Beer Company’s Fourth Quarter 2023 Earnings revealed an operational performance meeting the midpoint of their forecast, with depletions down by 6% for the year and gross margins achieving an improvement of 120 basis points.
  • However, net loss for the quarter indicated challenges, standing at $18.1 million, or $1.49 per diluted share.
  • 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.

Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Tenet Healthcare’s Q4 2023 earnings indicated a strong performance, with net operating revenues of $20.5 billion, and consolidated adjusted EBITDA of $3.54 billion, which translates into an attractive 17.2% adjusted EBITDA margin.
  • The company has demonstrated its ability to maintain profitability while focusing on quality and innovation.
  • Yet, some challenges were also mentioned during the earnings call.

Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Chemed Corporation reported their fourth quarter 2023 earnings with continued improvement in their VITAS operational metrics, including a 7% increase in admissions over the prior year period and an average daily census of 1,918.
  • This is an 11% increase in comparison to the prior year and suggests that a hiring and retention program initiated in 2022 to remedy any potential worker turnover and expand clinical workforce capacity has been successful in maintaining VITAS’ operational performance.
  • 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.

DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers

By Baptista Research

  • Examining the fourth quarter 2023 earnings for Dentsply Sirona reveals an investment thesis that emphasizes the company’s successful strategies, robust performance and rigorous financial discipline, alongside ambitious future business growth targets and consistent value creation for its stakeholders.
  • Starting with the positives, Dentsply Sirona achieved over 2% organic sales growth for 2023, outperforming projections via growth in three of its four business segments.
  • Notably, its orthodontic business experienced double-digit growth with both Byte and SureSmile.

Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers

By Baptista Research

  • In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.
  • The strong performance in 2023 indicates that the company’s innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.
  • Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.

Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors

By Baptista Research

  • Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
  • The strong performance includes four months of sales after its merger with NuVasive.
  • This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

Graphic Packaging Holding Company: Initiation Of Coverage – These Are The 3 Biggest Challenges In Its Path! – Major Drivers

By Baptista Research

  • Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
  • The strong performance includes four months of sales after its merger with NuVasive.
  • This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

Ionis Pharmaceuticals Inc.: Initiation Of Coverage – Its New wholly-owned medicines and Independent launches Can Catalyze Growth? – Major Drivers

By Baptista Research

  • Ionis Pharmaceuticals Inc. had a remarkable year in 2023, with significant advancements in their RNA targeting platform and a steady stream of upcoming independent medicines delivering directly to patients.
  • The company’s forward-looking stratagem involves expanding their technology and broadening its applicability to cater to patients’ needs.
  • 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.

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Apr 07
0

Daily Brief Thematic (Sector/Industry): The GLP-1 Landscape in Asia and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • The GLP-1 Landscape in Asia
  • Japan Weekly | Stocks Lower but Global Economy Remains Strong
  • GEMWeekly (5 Apr 2024): China, South Korea Macro; Xiaomi, TSMC, NIO, SK Hynix

The GLP-1 Landscape in Asia

By Avien Pillay

  • The obesity problem has escalated at an alarming rate in Asia. 
  • Expect strong growth for GLP-1s over the next few years, however, companies that produce next-generation drugs will take the lead.
  • The significant increase in newly approved drugs will result in margin pressure – pricing will be key.

Japan Weekly | Stocks Lower but Global Economy Remains Strong

By Mark Chadwick

  • US stocks recovered on Friday after a blow-out US jobs report. However, US 10 year yields ended the week up 19bps at 4.4%
  • Japanese stocks sank for a second week as tech stocks came under selling pressure
  • The 10% move in Sumitomo Metal Mining on higher copper prices highlights strength in global economy and perhaps sign of renewed growth in China

GEMWeekly (5 Apr 2024): China, South Korea Macro; Xiaomi, TSMC, NIO, SK Hynix

By Wium Malan, CFA

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Apr 07
0

Daily Brief Equity Bottom-Up: Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle
  • Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers
  • The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers
  • Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers
  • Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers
  • Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers
  • Fresenius Medical Care: Initiation Of Coverage – Innovation with AR in Dialysis Training & 4 Other Major Drivers
  • Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors
  • Graphic Packaging Holding Company: Initiation Of Coverage – These Are The 3 Biggest Challenges In Its Path! – Major Drivers

Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

By Scott Foster

  • The outlook for factory automation is improving with inventory clearance, the upturn in the semiconductor industry and an AI-enhanced response to the labor shortage.
  • Yaskawa’s margins should continue to rise with renewed growth in Robotics, efficiency gains and an upgraded product line. 
  • Valuation stretched at 30x EPS guidance for FY Feb-25, but current weakness looks like a long term buying opportunity.

Acadia Healthcare Company Inc.: Initiation Of Coverage – Investment in technology to optimize infrastructure and clinical outcomes! – Major Drivers

By Baptista Research

  • Acadia Healthcare delivered a robust financial performance for 2023, marked by a 12.2% annual revenue growth, 13.1% adjusted EBITDA growth, and 14.3% adjusted EPS growth compared to 2022.
  • In the fourth quarter, its same-facility revenue rose by 10.3% on the back of rate improvements and patient day growth.
  • Acadia also saw consistent improvement in its labor trends throughout 2023.

The Boston Beer Company Inc.: Initiation Of Coverage – Is Its Positioning In The Hard Seltzer Market Its Biggest Competitive Advantage? – Major Drivers

By Baptista Research

  • The Boston Beer Company’s Fourth Quarter 2023 Earnings revealed an operational performance meeting the midpoint of their forecast, with depletions down by 6% for the year and gross margins achieving an improvement of 120 basis points.
  • However, net loss for the quarter indicated challenges, standing at $18.1 million, or $1.49 per diluted share.
  • 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.

Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Tenet Healthcare’s Q4 2023 earnings indicated a strong performance, with net operating revenues of $20.5 billion, and consolidated adjusted EBITDA of $3.54 billion, which translates into an attractive 17.2% adjusted EBITDA margin.
  • The company has demonstrated its ability to maintain profitability while focusing on quality and innovation.
  • Yet, some challenges were also mentioned during the earnings call.

DENTSPLY SIRONA Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers

By Baptista Research

  • Examining the fourth quarter 2023 earnings for Dentsply Sirona reveals an investment thesis that emphasizes the company’s successful strategies, robust performance and rigorous financial discipline, alongside ambitious future business growth targets and consistent value creation for its stakeholders.
  • Starting with the positives, Dentsply Sirona achieved over 2% organic sales growth for 2023, outperforming projections via growth in three of its four business segments.
  • Notably, its orthodontic business experienced double-digit growth with both Byte and SureSmile.

Duplicate of Tenet Healthcare Corporation: Initiation Of Coverage – Its Focus on Higher Acuity Services in Hospitals & Other Core Strategies! – Major Drivers

By Baptista Research

  • Chemed Corporation reported their fourth quarter 2023 earnings with continued improvement in their VITAS operational metrics, including a 7% increase in admissions over the prior year period and an average daily census of 1,918.
  • This is an 11% increase in comparison to the prior year and suggests that a hiring and retention program initiated in 2022 to remedy any potential worker turnover and expand clinical workforce capacity has been successful in maintaining VITAS’ operational performance.
  • 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.

Elanco Animal Health: Initiation Of Coverage – A Story Of Concentration on Pet Health and Livestock Sustainability! – Major Drivers

By Baptista Research

  • In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.
  • The strong performance in 2023 indicates that the company’s innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.
  • Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.

Fresenius Medical Care: Initiation Of Coverage – Innovation with AR in Dialysis Training & 4 Other Major Drivers

By Baptista Research

  • Fresenius Medical Care’s Q4 2023 earnings highlighted the progress made against their strategic plan that was set out a year prior.
  • The plan focused on significant structural, operational and cultural changes, with the operating model being transformed at the start of 2023.
  • This allowed the company to introduce a new financial report with increased transparency, which reflected a commitment to their operational turnaround initiatives that aided organic growth in both segments and improved operational performance.

Globus Medical Inc.: Initiation Of Coverage – Increasing Portfolio Range & 3 Critical Growth Factors

By Baptista Research

  • Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
  • The strong performance includes four months of sales after its merger with NuVasive.
  • This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

Graphic Packaging Holding Company: Initiation Of Coverage – These Are The 3 Biggest Challenges In Its Path! – Major Drivers

By Baptista Research

  • Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
  • The strong performance includes four months of sales after its merger with NuVasive.
  • This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

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Apr 07
0

Daily Brief Macro: Out of the Box: 6 Reasons the Fed Will Be Hiking Rates in 2024 and more

By | Daily Briefs, Macro

In today’s briefing:

  • Out of the Box: 6 Reasons the Fed Will Be Hiking Rates in 2024
  • The Weekly Market Monitor – Gold Bugs, Debt Bubbles, and Volatility Bites
  • Portfolio Watch: The Real World Is Reflating Again

Out of the Box: 6 Reasons the Fed Will Be Hiking Rates in 2024

By Ulrik Simmelholt

  • Even though the Santa rally in US STIRS has largely been reversed, markets are still pricing in 2.5 full cuts by the end of this year or so with the first to come around summer time.
  • Currently, one of the most unappreciated risks by markets would be the Fed actually hiking rates in 2024 and thus we thought we would present 6 compelling and thought provoking arguments for why the Fed hiking in 2024 might not be impossible after all (our base case is a hold).
  • The first argument has to do with year-on-year inflation seemingly having reached its equilibrium at 3%, a range in which it has found itself for the last year or so.

The Weekly Market Monitor – Gold Bugs, Debt Bubbles, and Volatility Bites

By Jeroen Blokland

  • This week, the price of gold surged past USD 2,300 per Troy Ounce for the first time, and it was not because Western investors were rushing in.
  • Equity markets refuse to decline due to excessive fiscal stimulus, central bank eagerness to cut rates, and improving economic momentum.
  • Despite falling bond volatility, the MOVE index remains elevated relative to the VIX index, a sign of changing times.

Portfolio Watch: The Real World Is Reflating Again

By Elias Lisberg Glistrup

  • Welcome to this week’s rundown of our portfolio, its performance, and our most clear-cut conviction for the period ahead.
  • The cocktail of better economic activity and geopolitical tensions provided tailwinds for our long crude bet, which reached its take profit level Tuesday, and hence we are out of our oil position with a significant profit.
  • Most notably, and reflecting our still cyclically tilted portfolio allocations, we see growth trending higher in the cyclical parts of the economy through April on our models and nowcasts.

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