In today’s briefing:
- ZKH Group IPO: The Bear Case
- ACCO Brands Is At A Cyclical Discount
- Quest Diagnostics Incorporated: Detailed Credit Analysis & Financial Strength Evaluation Report
- Committed to Shareholder Returns
- Quest Diagnostics Incorporated: Initiation of Coverage – Business Strategy & Key Drivers
- Small Cap Idea: Rover (ROVR)
- Snap-on Incorporated: Initiation of Coverage – Business Strategy & Recent Developments
- Continued Evolution at Soluna as John Belizaire Appointed CEO; Dorothy Energization Imminent
- Zimmer Biomet Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Zimmer Biomet Holdings Inc.: Initiation of Coverage – Acquisition Of Embody & Other Drivers
ZKH Group IPO: The Bear Case
- ZKH Group (ZKH US), a leading MRO (maintenance, repair, and operations) procurement service platform in China, is pre-marketing an NYSE IPO to raise US$200-300 million.
- In ZKH Group IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on market share losses, slowing top-line growth, declining take rates and persistent cash burn.
ACCO Brands Is At A Cyclical Discount
- ACCO Brands Corporation’s stock is relatively undervalued and presents a lucrative dividend yield worth more than 6%.
- The company’s recent woes were a consequence of elevated raw material costs.
- However, key metrics imply that ACCO’s cost base is set to improve.
Quest Diagnostics Incorporated: Detailed Credit Analysis & Financial Strength Evaluation Report
- Quest Diagnostics Incorporated is a well-known provider of diagnostic information services.
- The company produced significant double-digit growth in prenatal genetics and pharmaceutical services for sophisticated diagnostics.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
Committed to Shareholder Returns
- Evolution is committed to a strategy of maximizing total shareholder returns through a combination of acquisitions to scale the business and returning cash to shareholders through dividends and common stock repurchases.
- The strategy is underpinned by a conservative financial posture.
- The board declared a quarterly dividend of $0.12/share for 3QFY23, marking the 38th consecutive quarterly cash dividend.
Quest Diagnostics Incorporated: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on leading diagnostic service provider, Quest Diagnostics Incorporated.
- The company produced significant double-digit growth in prenatal genetics and pharmaceutical services for sophisticated diagnostics.
- Agilent Technologies further signed an agreement with Quest to make the Agilent Resolution ctDx FIRST liquid biopsy next-generation sequencing (NGS) test available to providers and patients across the U.S.
Small Cap Idea: Rover (ROVR)
- Rover is the world’s largest network of pet sitters and dog walkers.
- Rover connects pet parents with pet care providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, including doggy daycare, dog walking, and drop-in visits.
- The marketplace has more than 500,000 pet care providers across North America and Europe.
Snap-on Incorporated: Initiation of Coverage – Business Strategy & Recent Developments
- This is our first report on Snap-on Incorporated, a well-known manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions in the U.S.
- The company’s last result was an all-around beat and its organic sales growth was in the double-digits with a particularly strong performance in the Repair Systems & Information Group, high single-digit gains in the Snap-on Tools Group, and low single-digit gains in the Commercial and Industrial Group.
- Snap-on Tools Group sales were $542.7 million, up from $504.8 million a year ago, with a 9.6% increase in organic sales.
Continued Evolution at Soluna as John Belizaire Appointed CEO; Dorothy Energization Imminent
- Soluna announced the promotion of John Belizaire to CEO of Soluna Holdings, with Michael Toporek stepping up to become Executive Chairman.
- John Belizaire will remain as CEO of Soluna Computing, the operating company he founded prior to its acquisition by Soluna Holdings’ predecessor Mechanical Technology Inc. (MTI).
- We view this as a logical step given the energization of Project Dorothy will be transformative for the company.
Zimmer Biomet Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Zimmer Biomet Holdings is a global medical technology giant.
- The management has been seeing positive comps across 2022 and saw good growth in major joints, with their entire global hip and knee business expanding well.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
Zimmer Biomet Holdings Inc.: Initiation of Coverage – Acquisition Of Embody & Other Drivers
- This is our first report on the global medical technology behemoth Zimmer Biomet Holdings.
- They observed another quarter of year-over-year growth in major joints, with their entire global hip and knee business expanding by more than 8% and 10% on an ex FX basis.
- We initiate coverage on the stock of Zimmer Biomet Holdings, Inc. with a ‘Hold’ rating.
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