In today’s briefing:
- Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Upstart Holdings: Focus on the Share Buyback & Outstanding Growth of AI Driven Lending Platform
- Weibo (WB US): Solid 4Q21 Results; Winter Olympics to Bolster User Engagement
- Pick of the Week: Infosys Ltd
Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.
- They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.
- There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV & an average daily trade value of +₩5.0B.
Upstart Holdings: Focus on the Share Buyback & Outstanding Growth of AI Driven Lending Platform
- We believe that Upstart’s share price has been excessively oversold since October 2021. Since its highs in October 2021, Upstart’s share price has declined significantly by nearly 72%.
- The combination of buying back shares, more attractive valuations, and a much stronger sales growth than its peers is likely to result in Upstart outperforming the market this year.
- Our base case valuation of Upstart is implied market cap of $13.8 billion and target price of $165 per share, which is 47% higher than current share price.
Weibo (WB US): Solid 4Q21 Results; Winter Olympics to Bolster User Engagement
- Weibo Corp (WB US) reported a set of solid results for 4Q21; ad revenue (excluding Alibaba) has post robust 28% year-over-year growth and MAU remains healthy.
- Weibo is leveraging its competences to increase user engagement. Weibo video account has amassed 25mn users; Weibo Live’s DAU has grown 100% year-over-year.
- Weibo current valuation 10x forward P/E looks attractive; we expect 1Q22 user engagement will improve given that topics on Winter Olympics has already exceeded Toyko Olympics.
Pick of the Week: Infosys Ltd
- Infosys is India’s second largest IT services exporter and has strong global presence.
- It provides industry wide solutions including next gen services like Cloud computing, digital transformations, IoT, Machine learning etc
- We recommend a Buy the stock for a target price of Rs 1895 implying an upside of 10% from CMP.
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