In today’s briefing:
- Top Material IPO Valuation Analysis
- Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)
- Dynatrace Inc: Initiation of Coverage – Growth Prospects & Strategy
- Lyft Inc: Marketing & Advertising Unit & Other Drivers
- MongoDB Inc: Major Drivers
- Omnicom Group Inc: Catering To The Gaming Market & Other Developments
- RingCentral Inc: New Features For Remote Working Environment & Other Drivers
- Alteryx Inc: New Alteryx Server For FIPS & Other Drivers
- Waste Management: Recent Acquisitions & Other Drivers
Top Material IPO Valuation Analysis
- Our base case valuation of Top Material (360070 KS) is a target price of 37,965 won per share, which is 33% higher than the mid-point of the IPO price range.
- Given the solid upside, we have a Positive view of the IPO. Our base case valuation is based on 25.6x P/E using our estimated net profit in 2022.
- We estimate the company to generate sales of 73.7 billion won (up 131.1% YoY) and operating profit of 14.1 billion won (up 190.3% YoY) in 2022.
Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)
- The effectiveness of Box’s Content Cloud strategy was manifested in its last result as it reported a sales increase of 15% year over year in the second quarter surpassing Wall Street expectations.
- Box’s Content Cloud strategy looks to unify the whole content life cycle on a single platform.
- Besides, the company launched more features for Box Relay, Box Sign, and API improvements in Q2.
Dynatrace Inc: Initiation of Coverage – Growth Prospects & Strategy
- This is our first report on Dynatrace, a well-known software intelligence platform for dynamic multi-cloud environments.
- The strength of its enterprise customer base and the resilience of its subscription model is reflected in the Q1 performance.
- This offers a solid base from which the company anticipates continuing to deliver a balanced business of growth, profitability, and cash flow.
Lyft Inc: Marketing & Advertising Unit & Other Drivers
- After a sharp correction, Lyft saw a recovery in the stock price and its results justified the same.
- Rideshare rides were up 27% year over year, and both active riders and rides have reached post-COVID highs.
- A mixture of new and seasoned drivers contributed to the largest number of active drivers in the past two years.
MongoDB Inc: Major Drivers
- MongoDB delivered another strong performance in the second quarter.
- During the quarter, they added more than 37,000 customers, indicating another robust quarter of customer growth.
- Furthermore, rates are still high, proving that their clients do not have a choice about spending money on MongoDB.
Omnicom Group Inc: Catering To The Gaming Market & Other Developments
- Omnicom’s performance in the second quarter was good as the company delivered an all-around beat.
- The company kept its attention on improving its current skills throughout the quarter to fulfill the demands of its clients and potential customers.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
RingCentral Inc: New Features For Remote Working Environment & Other Drivers
- RingCentral achieved good results in Q2 and delivered an all-around beat despite being impacted by the current macro climate.
- Its direct business and partners helped the company deliver an all-around beat.
- In Q2, RingCentral Rooms improved with brand-new seamless interfaces with hardware partners, including Avocor, Jabra, and EPOS.
Alteryx Inc: New Alteryx Server For FIPS & Other Drivers
- Alteryx had a strong Q2 result, exceeding Wall Street expectations in terms of both, revenues as well as earnings.
- The company reported an ARR of $727 million, up 33% year over year, and revenue of $181 million, up 50% year over year.
- The present market climate resonates with its value-driven sales approach, and sales execution is still excellent.
Waste Management: Recent Acquisitions & Other Drivers
- Waste Management had remarkable organic revenue growth, driven by a collection and disposal yield of 6.2%.
- The company continues to combat widespread inflationary cost pressures and its pricing has accelerated sequentially.
- Overall, we give Waste Management a ‘Hold’ rating with a revised target price.
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