Daily Brief United States: Astera Labs , Ethereum, Allegion Plc, Arthur J Gallagher & Co, Bumble, Carvana , Oracle Corp, Alcoa , United Airlines Holdings, Western Digital and more

• Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
• We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
• Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.

• It has been exactly eighteen months since Ethereum made the big switch from Proof-of-Work to Proof-of-Stake, an event widely known as the Merge.
• In simple terms, after the Merge, the responsibility for verifying transactions and proposing new blocks on the Ethereum network shifted from miners to holders, provided they choose to become stakers.
• To maintain the blockchain as stakers, holders lock up their Ether in the network.

• VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
• Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
• Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Arthur J. Gallagher & Co.
• reported strong fourth quarter results for 2023 with key financial metrics in line with its December IR day.
• Revenue growth for the Brokerage and Risk Management segments was 20% with 8.1% organic growth, a figure that the company corrects to 9.4% controlling for accounting adjustments and large life case timing.

• Bumble Inc.
• has reported an increase of 13% in its Q4 2023 revenue to $274 million, meeting its financial projections.
• This growth was propelled by a 16% rise in paying users, with contributions from both the Bumble and Badoo apps.

• Carvana has seen a big increase in its stock price despite concerns over bankruptcy that did not come to fruition
• The company has advantages in unit economics and is well-positioned to gain market share in the auto retail industry
• Carvana offers competitive pricing, quality, convenience, and selection, making it an attractive option for customers and investors alike

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Oracle Corporation’s Third Quarter Fiscal Year 2024 Earnings presented a mixed but predominantly positive picture.
• Chief Executive Officer Safra Catz noted excellent overall quarterly performance, with quarterly revenue meeting expectations and earnings per share exceeding it by $0.02.
• The company’s infrastructure cloud business (OCI) was singled out for significant praise, as it has become the main factor accelerating the overall revenue growth rate, even outpacing their cloud competitors.

• Alcoa highlighted improvement in safety and operational performance.
• The company achieved production records at its three smelters in Canada and one in Norway, signalling strong operational capabilities and efficiency.
• Improvements have been credited to a clear focus on values including integrity, operational excellence, and care for people.

• During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.
• The airline’s 2023 performance was framed as a clear demonstration of its United Next plan’s effectiveness, buoied by diversified revenue streams and robust operational metrics.
• United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

• Peloton Interactive, Inc., the manufacturer and seller of indoor exercise bicycles and treadmills, released its Q2 2024 result addressing several impactful issues regarding market penetration and sustainability.
• During the earnings, several overarching themes were pointed out, such as Tread and Tread+ growth, the strengthening of the all-important second leg to support growth, and the area’s substantial rise in renewal growth.
• 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.