In today’s briefing:
- Astera Labs IPO Preview
- BBW: 4Q Review: Adding Value; Initiates Q Dividend; Reiterate Buy, $41 PT
- SurgePays, Inc. – Reports Mixed 4Q Results in Uncertain Market
- Dollar General 4Q’23 Update
- VAALCO Energy (NYSE: EGY): Increasing Reserves.
Astera Labs IPO Preview
- Astera Labs (ALAB US) is scheduled to debut its IPO on 20 March. The company is offering 17.8 million shares at a price of $27 to $30 per share.
- Founded in 2017, Astera Labs is a fabless semiconductor company headquartered in Silicon Valley. The company designs and sells semiconductor technology, but the production is outsourced.
- Astera Labs’ major competitors include Montage Technology (688008 CH), Parade Technologies (4966 TT), Broadcom (AVGO US), Credo Technology Group Holding (CRDO US), and Marvell Technology (MRVL US).
BBW: 4Q Review: Adding Value; Initiates Q Dividend; Reiterate Buy, $41 PT
- We are reiterating our Buy rating and $41 price target for Build-a-Bear, slightly raising our FY24 EPS and rolling out FY25 projections after the company reported basically in-line 4QFY23 (January) results and initiated a quarterly dividend program, with an initial quarterly payout of $0.20 per share.
- We believe Build-A-Bear remains highly focused on shareholder value and the company is poised to register solid returns and upside as their experiential offerings continue to expand and resonate with their growing customer base; further, with net cash per share of over $3.10 (and no debt), a dividend yield of 2.7% and trading under 4.5X our FY25 EBITDA, we view the risk/reward in BBW as compelling, and we reiterate our Buy raring and $41 price target.
SurgePays, Inc. – Reports Mixed 4Q Results in Uncertain Market
- After the close on Tuesday, SurgePays reported mixed 4Q23 results.
- Total revenue of $32.3 million exceeded our $32.1 million estimate but was slightly below consensus of $33.6 million.
- However, EBITDA of $3.4 million was below both our estimate and consensus of $6.5 million and $6.9 million, respectively.
Dollar General 4Q’23 Update
- Dollar General (DG)’s stock had an interesting reaction to today’s earnings.
- First it went up by ~6% in pre-market, but then ended the day 5% down.
- Despite the somewhat bizarre stock price reaction throughout the day, I think the worst days are likely behind DG.
VAALCO Energy (NYSE: EGY): Increasing Reserves.
- VAALCO’s YE23 cash position of US$121 mm and FY23 WI production of 23,946 boe/d were in line with previous indications.
- The company held 77.3 mmboe WI 2P reserves at YE23 including 15.8 mmbbl in Gabon, 24.5 mmbbl in Egypt, 18.6 mmboe in Canada and 18.5 mmboe in EG. This represents a 1% increase vs YE23 as VAALCO has more than replaced its FY23 production given the strong performance of the producing assets in 2023.
- The FY24 capex budget is US$70-90 mm (we forecasted US$138 mm) as only US$30-40 mm will be spent in Gabon (on long lead items) with a larger than previously expected drilling programme starting in 2025.
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