In today’s briefing:
- ARM Holdings IPO Trading – Sold Hope, Now for Some Reality
- Instacart IPO Valuation Analysis
- Snap-on Inc: A Look at Their Strategic INDYCAR & Indianapolis Collaborations – Major Drivers
- Company Update – NIKE INC.
- Comment on Exchange Rate EUR/USD – August 4, 2023
- Nutanix Inc.: Can The GPT-In-A-Box Become A Pivotal Turning Point For The Company? – Key Drivers
- Technical Analysis On The Coca Cola Co. – July 28, 2023
- Campbell Soup Company: Can The Acquisition of Sovos Brands Be A Real Game Changer? – Major Drivers
- Wolfspeed Inc.: Is The Recent Divestment Of RF Business A Positive Development? – Key Drivers
- Elastic N.V.: Riding the AI Wave – A Look at Their Market Dominance – Major Drivers
ARM Holdings IPO Trading – Sold Hope, Now for Some Reality
- Softbank Group (9984 JP) raised around US$4.9bn via selling some of its stake in ARM Holdings (ARM US)‘ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about the trading dynamics.
Instacart IPO Valuation Analysis
- Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).
- We estimate the company’s operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.
- Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers.
Snap-on Inc: A Look at Their Strategic INDYCAR & Indianapolis Collaborations – Major Drivers
- Snap-on Incorporated achieved decent growth in both sales and profitability in its most recent result.
- Moreover, Snap-on’s success in the Tools Group highlighted its ability to innovate and cater to customer needs effectively.
- Snap-on’s customization and profitability, particularly in low-volume production, have been a driving force behind its growth.
Company Update – NIKE INC.
- NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities.
- The Company’s operating segments in- clude North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA).
- It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities.
Comment on Exchange Rate EUR/USD – August 4, 2023
- During the period under consideration, i.e. July 3rd – August 4th, 2023, the EUR/USD exchange rate was moving upwards until July 17th, 2023, but thereafter it followed a downward trend.
- However at the start of August, the Euro notched an uplift and was still trading higher than the levels in beginning of July.
- According to Graph 1, during the first twelve trading days of the period under consideration, the pair was fluctuating along the range 1.085-1.125.
Nutanix Inc.: Can The GPT-In-A-Box Become A Pivotal Turning Point For The Company? – Key Drivers
- Nutanix Inc. managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
- Notably, the company outperformed all guided metrics, achieving robust ACV billings growth and quarterly revenue.
- Additionally, the company generated significant free cash flow growth compared to the previous fiscal year.
Technical Analysis On The Coca Cola Co. – July 28, 2023
- The Coca-Cola Co. is a multinational beverage corporation focused on the production, marketing, and distribution of specialty soft drinks across approximately 200 markets.
- With a vast network of over 35,000 Company-operated and licensed stores, it operates through three primary segments: North America, encompassing the United States and Canada; International, spanning regions like China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America, and the Caribbean; and Channel Development.
- Both the North America and International segments include a mix of Company-operated and licensed outlets.
Campbell Soup Company: Can The Acquisition of Sovos Brands Be A Real Game Changer? – Major Drivers
- Campbell Soup Company managed to surpass the revenue expectations of Wall Street.
- The fourth quarter saw a 5% increase in organic net sales, driven by inflation-induced net price realization and strong in-market performance.
- For the full year, Campbell Soup achieved double-digit organic net sales growth of 10% and solid adjusted EBIT growth of 5%, with consumption rising by 8%, reflecting increased consumer demand and effective strategic execution.
Wolfspeed Inc.: Is The Recent Divestment Of RF Business A Positive Development? – Key Drivers
- Wolfspeed Inc. delivered mixed results in the last quarter, with revenues above Wall Street expectations but below-par earnings.
- The company’s Mohawk Valley Fab, the largest fully-automated 200-mm silicon carbide fab, started shipping products and continues to ramp production, thus contributing revenue.
- With customers transitioning to silicon carbide, the company continues to see growth in the traditional energy and industrial segment.
Elastic N.V.: Riding the AI Wave – A Look at Their Market Dominance – Major Drivers
- Elastic NV delivered an all-around beat in the most recent quarterly result.
- The company achieved a milestone with annual contract values exceeding $100,000, demonstrating Elastic’s rising popularity as the preferred data analytics platform for real-time search use cases.
- The second trend involved customers consolidating their operations onto the Elastic platform for multiple use cases, benefiting from Elastic’s core strengths and unmatched value proposition in search, log analytics, and security analytics.
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