Investment Rating - The report assigns a "Buy" rating to Mitsubishi Electric (MELCO) [2][14][17]. Core Insights - Mitsubishi Electric is undergoing significant management changes aimed at shifting from a Japan-centric approach to a more global and innovative strategy. The management is committed to qualitative changes and enhancing corporate value over the medium to long term [2][14]. - The company has a strong financial position, highlighted by a net cash position and a recent ¥100 billion share buyback to reduce its cost of capital. However, it recognizes the need for a robust growth strategy, including a ¥1 trillion M&A budget to encourage business divisions to leverage their strengths [2][3][14]. - MELCO aims to achieve a market capitalization of ¥10 trillion, which it believes cannot be accomplished with its current approach. The company is focused on becoming more innovative and willing to take risks [8][14]. Summary by Sections M&A Strategy - MELCO has set a ¥1 trillion M&A budget to pursue opportunities in the digital transformation field, acknowledging the high valuations in this sector. The company is also looking to consolidate its software business around ICONICS, which it acquired in 2019 [3][14]. Business Restructuring - The company plans to significantly reduce headcount in its factory automation (FA) business and is reviewing businesses with combined annual sales of ¥1.3 trillion, including exiting low-margin businesses and downsizing overseas production facilities [1][6][14]. - MELCO is considering restructuring its automotive business, which generates around ¥700 billion in annual sales, and is also reviewing its core FA business [9][14]. Digital Strategy - The FA solutions division has developed a cloud-based system for data updates, allowing customers to monitor equipment status via smartphones. Each business division has been tasked with finding ways to leverage the Serendie digital platform [7][14]. Financial Performance - The report projects revenue growth for MELCO, with expected revenues of ¥5,521.7 billion for FY3/25, increasing to ¥6,161.0 billion by FY3/28. Operating profit is also expected to rise from ¥391.9 billion in FY3/25 to ¥590.6 billion in FY3/28 [17].

Investment Rating - The report assigns a "Buy" rating to Insmed Inc. (INSM) with a 12-month price target of $112, representing an upside potential of 58.5% from the current price of $70.68 [21]. Core Insights - Insmed Inc. reported positive topline data from the Phase 2b TPIP PAH trial, meeting all primary and secondary efficacy endpoints, which resulted in a 35% placebo-adjusted reduction in pulmonary vascular resistance (PVR) and a 35.5m placebo-adjusted improvement in the 6-minute walk test (6MWT) [1][2]. - The data suggests that TPIP has the potential to significantly alter the pulmonary arterial hypertension (PAH) treatment landscape, with a new gross sales estimate of $1.55 billion in PAH alone and $3.2 billion across both PAH and PH-ILD [1][16]. - The report highlights the pharmacologic advantages of TPIP, including its once-daily formulation, which is expected to improve patient compliance compared to competitors that require more frequent dosing [16]. Summary by Sections Efficacy Data - TPIP achieved a 35% placebo-adjusted reduction in PVR at week 16, significantly exceeding the company's best-case scenario of 25% [2]. - The trial also demonstrated a 60% placebo-adjusted reduction in NT-proBNP and a 15% placebo-adjusted improvement in cardiac index, indicating strong efficacy [7][16]. Safety Profile - TPIP was generally well tolerated, with 95% of patients completing the study and enrolling in the open-label extension study [6]. - Treatment-emergent adverse events (TEAEs) occurred in 88.4% of TPIP patients, with serious TEAEs observed in 7.2% [8]. Market Potential - The addressable PAH population is estimated at approximately 90,000 patients, with management's expectations for peak sales of over $2 billion likely to be revised higher based on the positive trial results [16]. - The report emphasizes that TPIP's once-daily dosing and pharmacologic profile position it as a best-in-class prostanoid, potentially disrupting the current treatment landscape for PAH [16].

Investment Rating - The report reiterates a Buy rating on Cameco Corp. (CCJ) with a 12-month price target of $78.00, indicating an upside potential of 16.6% from the current price of $66.91 [15]. Core Insights - The Czech Republic and South Korea have reached an agreement on a $19 billion project for two nuclear reactors, which is expected to significantly boost Westinghouse's revenue and EBITDA, of which CCJ owns a 49% stake [1][3]. - Westinghouse is in discussions to deploy 10 large reactors in the US, which could further enhance its revenue growth, aligning with the US government's goal of having 10 new reactors under construction by 2030 [5][8]. - The Dukovany project is projected to increase Westinghouse's EBITDA by approximately $340 million in 2025, leading to an adjusted EBITDA range for CCJ of $525 million to $575 million for the year [6][10]. Summary by Sections Westinghouse/KHNP Agreement - A framework agreement was established between Westinghouse and Korean companies for reactor deployments, which is expected to benefit both parties [2]. KHNP/Czech Deal - The deal for two reactors at the Dukovany atomic plant is anticipated to provide significant financial benefits to Westinghouse, with expected revenue streams from both upfront payments and ongoing project revenues [3][6]. US Exposure to New Builds - The Trump Administration's executive orders aim for 10 new nuclear reactors by 2030, positioning Westinghouse as a key player in future reactor builds in the US [5][8]. EBITDA Impact from Korea/Czech Deal - The Dukovany project is expected to contribute an additional $170 million to Westinghouse's EBITDA, enhancing CCJ's financial outlook [6][10]. Additional Implications from Korea Deal - There is potential for further revenue upside from engineering and procurement work related to the Dukovany project, although the exact benefits remain uncertain [7]. New Builds and Revenue Growth - Westinghouse is also in talks for nuclear projects in Poland and Bulgaria, which could contribute to its revenue and EBITDA growth [8][10]. Valuation Changes - Adjusted EBITDA estimates for CCJ have been revised upwards for 2025-2027, reflecting anticipated revenue growth from new reactor builds [11].

Investment Rating - The report assigns a Neutral rating to Brown & Brown Inc. (BRO) since May 13, 2025, with a current price of $105.49 and a target price of $119.00, indicating an upside potential of 12.8% [8][34]. Core Insights - The acquisition of Accession Risk Management Group for approximately $9.825 billion is expected to enhance BRO's scale and accelerate its revenue growth towards an intermediate goal of $8 billion [2][20]. - The deal is projected to close in the third quarter of 2025 and is anticipated to generate synergies of around $150 million by 2028, which will improve BRO's diversification and reduce its exposure to property catastrophe risks [1][20]. - The acquisition is expected to be accretive to BRO's earnings per share (EPS) by approximately 8% to 13% in 2026, driven by additional earnings from Accession and cost synergies [21][22]. Summary by Sections Acquisition Details - BRO announced the acquisition of Accession for a total consideration of $9.825 billion, which translates to a multiple of approximately 15.7x on Accession's 2024 adjusted EBITDAC [1]. - The deal is expected to close in Q3 2025, with BRO having already cleared the necessary antitrust waiting period [1]. Strategic Rationale - The acquisition aligns with BRO's strategy to gain scale in the U.S. retail P&C brokerage and employee benefits sectors, enhancing its presence in the middle-market segment [2]. - Accession's business model and geographic focus are similar to BRO's, which is expected to facilitate integration and operational synergies [2][30]. Financial Projections - The report provides financial forecasts for BRO, including adjusted net income estimates of $1.1 billion for 2024, increasing to $1.475 billion by 2027, with corresponding EPS growth from $3.86 to $5.18 [3][14]. - The expected revenue growth for Accession in 2025 is projected at 9%, with a slowdown anticipated from 17% growth in 2024 due to market conditions [24][19]. Valuation Metrics - The implied EV/NTM Adj. EBITDAC multiple for the acquisition is estimated to be in the range of 13.1x to 14.9x, which is competitive compared to industry peers [18][26]. - BRO's financial ratios indicate a P/E ratio of 24.2 for 2024, decreasing to 20.4 by 2027, reflecting a positive outlook on earnings growth [3][9].

Investment Rating - The report maintains a "Buy" rating for Energisa, Equatorial, and Copel, while Cemig is rated as "Sell" [6][64][50]. Core Insights - The new power distribution opex methodology approved by the regulator aims to enhance efficiency sharing with consumers, impacting the fair equity values of the companies covered [7][21]. - Energisa and Equatorial are the most exposed to the new methodology, with estimated impacts of -9% and -8% on their fair equity values, respectively [2][8]. - Despite recent market rallies, the sector remains reasonably valued, with an average real spread of approximately 3.8% to Brazil's free risk bonds [3]. Summary by Sections New Opex Methodology - The new methodology includes annual updates to reference opex, a simplified benchmark model, and the application of the IPCA index for all variables [7][21]. - Cost outperformance sharing with consumers is now correlated to median sectoral efficiency, with limits set at 140%/60% for cost outperformance [21][28]. Company-Specific Adjustments - Energisa's fair equity value is adjusted down by -9% due to the new methodology and updated power demand forecasts, with a revised 2025E growth estimate of 0.5% YoY [49][50]. - Equatorial's fair equity value is adjusted down by -8%, with a similar revision in growth estimates to 0.5% YoY for 2025E [63][64]. - Copel is the least affected, with a -3% impact on fair equity value [2][8]. Market Demand and Forecasts - The report incorporates updated forecasts from Brazil's independent power system operator, indicating a decrease in power demand growth, with a -4% YoY drop noted in April and May 2025 [44][45]. - The overall demand forecast for 2025E has been revised down to -3.1% YoY from a previous estimate of +0.4% YoY [44][45].

Investment Rating - The report does not explicitly state an investment rating for the pulp and paper industry [1]. Core Insights - Chinese pulp prices for May decreased by 13% month-over-month (m/m) for hardwood and 11% m/m for softwood, with hardwood resale prices declining by 5% and softwood resale prices decreasing by 2% m/m [5]. - In Europe, pulp prices remained stable, with hardwood prices flat m/m and softwood prices increasing by 1% m/m [5]. - China's paper prices showed mixed results, with most grades experiencing flat to low single-digit declines m/m, while containerboard prices slightly increased [5]. - Compared to their 5-year historical averages, paper margins are 38% below for ivoryboard and 15% below for tissue, while 5% above for uncoated woodfree (UWF) and 13% above for coated woodfree (CWF) [5]. - China’s pulp port inventories increased by 3% m/m to 2.2 million tons (Mt), exceeding the historical average of 1.8 Mt [5]. - European port inventories declined by 13% m/m in April, reaching 1.3 Mt, aligning with the historical average [5]. Summary by Region Global - The report includes a comprehensive overview of global pulp and paper prices, production, and consumption trends [6]. China - Pulp prices in China for hardwood are at $517 per ton, down 13% m/m, while softwood prices are at $712 per ton, down 11% m/m [7]. - Paper prices in China show a range of changes, with coated woodfree at 5,475 CNY per ton, down 4% m/m [7]. Europe - Hardwood pulp prices in Europe are stable at $1,194 per ton, while softwood prices increased to $1,597 per ton, up 1% m/m [7]. - Containerboard prices in Europe have risen by 1% to 3% m/m [5]. USA - In the US, coated woodfree prices are at $1,515 per ton, stable m/m, while uncoated woodfree prices are at $1,610 per ton, also stable m/m [7]. Latin America - The report highlights trends in containerboard shipments in Brazil, indicating a year-over-year growth [70].

Investment Rating - The report indicates a preference for Beverage, followed by Pet Foods, Beer, and Dairy, with specific stock ideas highlighted for Eastroc, Tingyi/CR beverage, and Tsingtao-H [9][10]. Core Insights - The industry is experiencing a bumpy recovery in demand, particularly in the spirits, beer, and dairy sectors, with recent policy changes impacting consumption sentiment [1][3]. - Emerging channel shifts, such as instant shopping and discounter channels, are gaining traction, although their overall contribution to the staples universe remains small [1][8]. - Profitability resilience is supported by cost deflation and agile investment strategies, with companies focusing on margin visibility amid muted demand trends [1][9]. Demand Recovery - The demand recovery in Q2 has been lackluster, with notable declines in spirits and dairy products, while beer performance varies across brands [2][11]. - Retail performance has been conservative, with spirits and dairy showing year-over-year declines, particularly in the upper mid-end segments [2][11]. - The beverage sector shows solid volume momentum, although mixed performance is noted across brands [2][11]. Policy Impact - Recent policy tightening on alcohol consumption has created headwinds for spirits and beer companies, particularly affecting high-end catering and on-trade consumption [3][6][34]. - The government has implemented regulations prohibiting the serving of alcoholic drinks during working meals, impacting consumption sentiment during peak seasons [3][6][34]. Emerging Trends - There is a notable shift towards discounter channels and instant shopping platforms, with companies customizing products to meet rising demand [8][10]. - The pet food and beverage categories are experiencing positive product cycles, contributing to growth despite overall market challenges [7][41]. Pricing and Cost Trends - Pricing pressures persist across various sectors, with dairy and beverages introducing more value-for-money products in response to declining raw milk prices [12][36]. - Cost benefits from declining commodity prices are expected to support margin resilience across multiple sectors, including beer and dairy [7][12]. Company Performance - Companies like Yili and Mengniu are facing weak demand trends in UHT liquid milk, while fresh milk and chilled yogurt categories are performing better [38]. - CR Beer and Chongqing Brewery are focusing on in-home consumption and premiumization strategies to counteract weak on-trade demand [35][40]. - The pet food sector remains strong, with companies like China Pet expecting significant year-over-year growth driven by new product launches [41].

Investment Rating - The report maintains a Buy rating on Adecco and a Neutral rating on Randstad [6][9]. Core Insights - The report highlights a continued improvement in temp staffing trends and PMI numbers, indicating a positive outlook for the temp staffing industry. Month-on-month temp volumes have shown growth since January 2025, suggesting a potential recovery in topline performance for staffing companies after a prolonged period of weakness [5][18]. - French temp staffing data for May 2025 showed a year-over-year volume decline of -5.7%, an improvement from -8.1% in April 2025. Dutch turnover data for the same period improved significantly to +5% year-over-year [1][3]. - US temp staffing volumes were down approximately -5% year-over-year in May 2025, consistent with the decline seen in April [4][14]. Summary by Sections French Temp Staffing - French temp staffing volumes declined by -6% in May 2025, improving from -8% year-over-year in April 2025 [10]. - The turnover for French temp work improved to approximately -1% compared to -5% in April 2025 [3]. Dutch Temp Staffing - Dutch turnover increased by approximately +5% year-over-year in the 5th 4-week period of 2025, a significant improvement from -2% in the previous period [12]. US Temp Staffing - US temp staffing volumes declined by approximately -5% year-over-year in May 2025, maintaining a stable temp penetration rate at multi-year lows of 1.59% [4][14]. Company Performance - Adecco is expected to deliver a faster topline recovery compared to peers, supported by its differentiated business mix and better execution [7]. - Randstad's performance remains neutral, with a need for evidence of market outperformance to turn more positive on the company [9]. Valuation Metrics - Adecco is trading close to trough EV/sales multiples, with a 2025E EV/sales of 0.3x [6]. - Randstad is trading at approximately 0.4x EV/sales [25].

Investment Rating - The report indicates a solid total food sales growth of +2.8%/+3.2% year-over-year for the latest 4 weeks and 12 weeks, aligning with the long-term trend of low single-digit growth [1][6]. Core Insights - Total food sales growth is primarily driven by pricing, although there is a noted decline in volumes across most packaged food categories, with HSY being an exception due to pricing support [1][9]. - All companies within the coverage have lost market share in their top categories, indicating competitive pressures [1][10]. Department & Category Detail - Total food sales increased by +2.8% year-over-year in the latest 4 weeks, with private label products leading in most categories [2]. - Total equivalent (EQ) units decreased by -0.5% year-over-year, with branded products slightly outperforming private label products [2][5]. - Yogurt and packaged coffee showed the highest sales growth at +13.5% and +13.4% year-over-year, respectively, with private label sales growth strongest in snack/variety packs, meal combos, and packaged coffee [5][7]. Company Performance - CAG reported a sales decline of -1% year-over-year, driven by lower prices, while volumes remained flat [9]. - GIS experienced a -2% year-over-year sales decline, attributed to lower volumes [10]. - HSY saw a sales increase of +5% year-over-year, supported by higher prices and volumes [11]. - K reported a -3% year-over-year sales decline, primarily due to lower volumes [12]. - KHC's sales declined by -4% year-over-year, with lower volumes impacting performance [13]. - MDLZ reported a -1% year-over-year sales decline, driven by lower prices [14]. - SFD experienced a -1% year-over-year sales decline, although packaged lunchmeat showed strong growth [15].

Investment Rating - The report indicates a positive inflection in US cosmetics sales, with a growth of +0.6% in the latest two-week period ending May 31, 2025, compared to previous periods which showed declines [1]. Core Insights - US cosmetics and nails sales have shown resilience with a slight growth, driven by strong performance in lip cosmetics, which grew +9.5% in the latest two weeks [1]. - ELF Cosmetics has significantly outperformed its peers with a sales increase of +25.3%, continuing to gain market share [1]. - Coty has faced challenges, with a sales decline of -9.3%, although its fragrance segment saw a growth of +11.5% [1]. Sales, Volume & Pricing Trends - Total US cosmetics and nails sales reached $9,665 million, with a year-over-year growth of +0.6% in the latest two weeks [4]. - L'Oreal's sales were $2,842 million, showing a slight growth of +0.8% in the latest two weeks, while Coty's sales were $984 million, reflecting a significant decline of -12.5% [4]. - ELF Cosmetics reported sales of $1,037 million, with a robust growth of +16.7% in the latest two weeks [4]. Dollar Share Trends - L'Oreal holds a 29% market share in the US cosmetics sector, while Coty has a 10% share, and ELF Cosmetics has an 11% share [4]. - The report highlights that ELF has been gaining dollar share consistently, contrasting with Coty's declining share [1][4]. Distribution Trends - The report does not provide specific details on distribution trends, focusing instead on sales and volume performance across major brands and manufacturers [3]. Promotional Trends - Promotional activities and their impact on sales are not detailed in the report, which primarily emphasizes sales growth and market performance [3]. Brand Performance - Among the top brands, ELF Cosmetics has shown exceptional growth, while brands like Maybelline and Covergirl have experienced declines [5]. - The lip cosmetics market has seen a total sales of $1,197 million, with a growth of +9.5% in the latest two weeks [5]. Summary of Key Brands - ELF Cosmetics has emerged as a leader with a sales increase of +52.4% in the lip cosmetics category, while Coty and Maybelline have faced significant declines [5]. - L'Oreal's brands, including Maybelline and NYX, have shown mixed results, with some categories experiencing growth while others decline [5].