Investment Rating - The report maintains a Neutral rating on StepStone Group (STEP) and raises the 12-month target price to $63 from $57, indicating a potential upside of 6.2% from the current price of $59.30 [6][8]. Core Insights - STEP reported FY4Q25 EPS of $0.68, significantly up from $0.44 in FY3Q25, driven by record Fee-Related Earnings (FRE) of $94 million and strong net performance fee contributions of $42 million [1]. - The management fee revenue benefited from $15.7 million of retroactive fees, contributing to a healthy FRE margin of 44% for the quarter, with expectations for a normalized FRE margin of approximately 37% for FY26 [1][4]. - Fee-earning Assets Under Management (AUM) increased to $121 billion, reflecting a 6% quarter-over-quarter growth, supported by record private wealth subscriptions of $1.2 billion and $9.9 billion in gross inflows [1][4]. - The report anticipates continued management fee growth in the high teens, driven by strong fundraising momentum across various strategies and a doubling of Wealth AUM year-over-year to $8.2 billion [1][4]. - The report revises EPS estimates for calendar years 2025, 2026, and 2027 to $2.18, $2.35, and $2.74 respectively, reflecting improved visibility on AUM growth and a favorable FRE mix shift [1][5]. Summary by Sections Financial Performance - STEP's FRE margin for FY4Q25 was reported at 44%, benefiting from retroactive and non-recurring advisory fees, with a normalized FRE margin expected to be around 37% for FY26 [4]. - The company completed its second tranche of Non-Controlling Interest (NCI) buy-in, issuing $161 million in equity, which is expected to be modestly accretive to EPS [4]. Wealth Management - The Wealth business achieved record subscriptions of $1.2 billion, with AUM reaching $8.2 billion, up from $6.3 billion in the previous quarter and $3.4 billion year-over-year [1][4]. - STEP's evergreen suite is now available on nearly 500 platforms, with a distribution strategy focused on Europe [1][4]. Valuation Metrics - The SOTP analysis indicates a target price of $63, with a breakdown showing 78% of value derived from FRE, 19% from carry, and 2% from balance sheet value [5][6]. - The current valuation of STEP is approximately 27 times the 2025 estimated adjusted diluted earnings, aligning with the three-year average NTM P/DE of 27-28 times [1].

Investment Rating - The report assigns a "Buy" rating for Baidu.com Inc. (BIDU) with a 12-month price target of $96.00, indicating an upside potential of 14.4% from the current price of $83.92 [1]. Core Insights - The management aims to accelerate the AI search revamp, targeting a penetration rate of AIGC search results to reach 70-80% by the end of 2025, which is expected to lead to a near-term advertising revenue decline of over 10% year-on-year in Q2 and Q3 of 2025 [1][16]. - The cloud business is expected to maintain solid growth, with a 42% year-on-year increase in Q1 2025, driven by recurring subscription-based revenue despite fluctuations in project-based revenue [1][18]. - Margin pressure is anticipated in Q2 and Q3 of 2025 due to operating deleverage from advertising headwinds and investments in AI initiatives [1][20]. Advertising Outlook and AI Search Revamp - Management is focused on enhancing the AI search revamp, with expectations of a significant decline in advertising revenue in the near term due to the transition to AIGC search results [1][16]. - The advertising revenue for Baidu is projected to decrease from Rmb 72,849 million in 2024 to Rmb 67,261 million in 2025, reflecting a year-on-year decline of 8% [16]. Cloud Business Momentum - Baidu's cloud revenue is expected to grow significantly, with management highlighting the GPU cloud as a supply-constrained market where Baidu has a competitive edge [1][17]. - The cloud revenue is projected to reach Rmb 27,950 million in 2025, with a year-on-year growth rate of 28% [23]. Margin Dynamics - The report indicates that group-level margin pressure is expected due to a mix of slower advertising growth and faster growth in cloud and autonomous driving segments [1][20]. - Management anticipates that both the cloud and autonomous driving segments will see incremental margin improvements in FY25 [20][21]. Financial Projections - Total revenue is forecasted to grow from Rmb 133,125 million in 2024 to Rmb 135,929 million in 2025, reflecting a modest year-on-year growth of 2% [23]. - EBITDA is expected to decline from Rmb 34,907.5 million in 2024 to Rmb 31,420.6 million in 2025, indicating a year-on-year decrease of 10% [23]. Price Performance - The report notes that Baidu's stock has underperformed relative to the NASDAQ Composite, with a 12-month absolute return of -16.3% [12].

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]

Investment Rating - The report assigns a "Buy" rating to AstraZeneca, placing it on the Conviction List, while other companies like Roche are rated "Sell" [2]. Core Insights - The Utilities sector is entering a new era characterized by growing power demand and earnings, driven by the modernization of the grid and increased energy security needs. Europe may require EUR 2 trillion to modernize its power system after years of underinvestment [1]. - The SERD class of breast cancer therapies is highlighted as a key focus area, with AstraZeneca's camizestrant positioned favorably for long-term growth, potentially worth over $15 billion by 2035 [2]. Summary by Sections Utilities Sector - The Utilities sector is experiencing a resurgence with power demand growing after 15 years of decline, and companies are returning capital to shareholders. Key players identified as 'Electrification Compounders' include EDPR, RWE, SSE, National Grid, Iberdrola, E.ON, Enel, and Engie [1]. - The recent Spanish blackout has sparked discussions on the need for significant investment in the power system, with estimates suggesting EUR 2 trillion is needed for modernization [1]. Pharmaceutical Sector - AstraZeneca's camizestrant is seen as a critical driver for the company's growth, especially in the context of a large eligible patient population exceeding 500,000 globally. The SERD class of therapies could generate substantial revenue by 2035 [2]. - The report emphasizes the importance of upcoming data presentations as potential catalysts for market recognition of AstraZeneca's unique positioning in breast cancer treatment [2].

28 May 2025 | 7:23PM IST MakeMyTrip Ltd. (MMYT): TechNet India 2025 - Key Takeaways: Robust growth and FCF outlook; more clarity on capital allocation; Buy We hosted MakeMyTrip at our GS TechNet India in Singapore, where the company shared incremental details in demand outlook, outbound travel, economics and capital allocation. Key takeaways include: (i) MMYT expects to grow more than 2x of the underlying travel market (20% YoY) for the foreseeable future, largely led by volume growth; (ii) MMYT has seen li ...

Investment Rating - The investment rating for Rentokil Initial Plc is Neutral [4][7]. Core Views - The sale of the French Workwear business for approximately €410 million ($465 million) is aligned with the company's strategy to streamline operations towards lower capital expenditure pest and hygiene businesses [3][4]. - The transaction is expected to improve the group's capital expenditure to sales ratio and cash flow, with free cash flow conversion benefiting by approximately 100 basis points [3][4]. - The Workwear business generated revenues of $324 million and operational EBITA of $57 million in FY24, indicating a margin of approximately 17.7% [2][4]. Financial Metrics - The transaction values the Workwear business at approximately 1.4x EV/Sales and 8x EV/EBITA based on 2024 estimates, and about 3x EV/EBITDA assuming capital expenditures equal depreciation and amortization [2][4]. - The expected net cash proceeds from the sale are approximately €370 million ($420 million) [1][2]. - The company's 12-month price target is set at 425p, with an upside potential of 20% from the current price of 354.2p [7]. Future Projections - Revenue forecasts for Rentokil Initial Plc are projected to grow from $6.94 billion in 2024 to $7.87 billion by 2027 [7]. - EBITA is expected to increase from $1.065 billion in 2024 to $1.277 billion in 2027 [7]. - The company anticipates a gradual improvement in earnings per share (EPS), from $0.27 in 2024 to $0.32 in 2027 [7].

28 May 2025 | 6:25PM EDT Caitlin Burrows Vornado Realty Trust (VNO): 1Q25 Model Update: PENN 2 leasing (and NOI/FFO contribution) in focus Following 1Q25 earnings, we provide earnings call takeaways, update model and price target, and show valuation trends. For additional office insight, we are hosting meetings with HPP (on 6/3) and KRC (on 6/4) as part of NAREIT in NYC, and a separate group event with Tishman Speyer on June 10 in NYC. Please be in touch if you would like to join. Earnings call takeaways Se ...

Investment Rating - The report assigns a Neutral rating on Leslie's Inc. (LESL) with a 12-month price target of $3 based on EV/EBITDA multiples of 8.0x/9.0x/10.0x for downside/base/upside cases [40]. Core Insights - Memorial Day weekend demand for pools was in line with the previous year, and similar sales are expected for the summer, with chemical sales likely to remain stable but discretionary sales anticipated to decline [1][3]. - Google search trends indicate an increase in interest for pool-related topics in key states, suggesting a potential uptick in demand, although Leslie's Pool Supplies experienced a decline in search interest [19][24]. - Approximately 75% of surveyed retailers do not view Leslie's or Walmart as strong competitors in the pool supply market [3][16]. Summary by Sections Survey Results - A survey of 27 independent specialty pool retailers indicated that demand during Memorial Day 2025 was consistent with 2024, with no expectations for increased demand for chemicals or discretionary items [2][3]. - Retailers expressed that prices for pool supplies are not expected to be lower than the previous year [10]. Google Search Trends - Google search interest for "pool" in April and May 2025 remained stable compared to 2024, with increases noted against 2023 and pre-pandemic levels [24]. - Searches for Leslie's Pool Supplies showed a decline in interest compared to previous years, indicating potential challenges for the company [24][31]. Market Competitiveness - The majority of retailers surveyed do not consider Leslie's or Walmart as significant competitors, with 22% affirming Leslie's as a competitor and 5% for Walmart [3][16]. - Retailers are cautious about the competitive landscape, with many not expecting significant changes in market dynamics [3].

28 May 2025 | 5:19PM BST Hennes & Mauritz (HMb.ST) Updating 2Q/FY25 earnings for recent FX trends and related opex gearing; PT remains SKr125, Sell HMb.ST 12m Price Target: Skr125.00 Price: Skr139.15 Downside: 10.2% Ahead of the H&M May 2Q-end, we have updated our earnings for FX, reflecting a stronger Swedish Krona and the related adverse opex gearing (opex FX exposure c.75% of revenue exposure). For 2Q25E, we have reduced revenue growth to -4.3% (from -2.6%) driven by an FX impact of -5.2% (from -3.6%) an ...

Investment Rating - The report assigns a Neutral rating to Kingfisher with a price target (PT) of 305p [1][3][33] Core Insights - Kingfisher experienced a positive start to the year, particularly in the UK and France, with 1Q26 like-for-like (LFL) sales increasing by 1.8%, and 2.7% when excluding a negative calendar impact [2][3] - The UK & Ireland reported a strong LFL sales growth of 5.9%, driven by B&Q's 7.9% and Screwfix's 2.9% growth, while France and Poland faced declines of 3.2% [2][3] - The report highlights that some of the growth in the UK during 1Q may have been pulled forward from 2Q, and management remains cautious with unchanged earnings guidance [1][3] Financial Performance - The adjusted pre-tax profit (PBT) guidance for FY26 is set between £480 million and £540 million, with an updated FY26E PBT forecast of £524 million [3][5] - Online sales grew by 9.3% year-on-year, contributing 20% to group sales, and trade penetration, including Screwfix, increased to 29% from 26% in 1Q25 [2][3] - The report projects total revenue for FY26E at £12,661.7 million, with a slight decline from the previous year, but anticipates a growth of 3.0% in FY27E [5][16] Regional Performance - In the UK, sales are expected to grow from £6,456 million in FY25 to £6,689.9 million in FY26E, reflecting a growth rate of 3.6% [29] - France's sales are projected to decline from £3,883 million in FY25 to £3,746.3 million in FY26E, indicating a challenging market environment [31] - The Polish market is experiencing a decline, with LFL sales down by 3.2%, reflecting geopolitical impacts on the DIY market [1][2] Valuation Metrics - The report indicates a DCF-derived price target of 305p, equating to approximately 12x FY27E P/E [33][34] - Key financial ratios include a projected P/E of 13.7 for FY26E and a free cash flow yield of 8.5% [5][11] - The report notes a dividend yield of 4.2% for FY26E, with a consistent dividend payout ratio [5][11]