Investment Rating - The report maintains a Neutral rating for Life Insurance Corporation of India (LIFI.BO) since June 22, 2022, with a target price of Rs880.00, indicating a potential upside of 1.0% from the current price of Rs871.05 [7][12]. Core Insights - The company reported a 4Q APE of Rs189 billion, reflecting an 11% year-over-year decline and a 4% miss against Goldman Sachs estimates. The VNB for the quarter was Rs35.3 billion, down 3% year-over-year, aligning with estimates, resulting in a VNB margin of 18.7%, which is an improvement of 77 basis points compared to estimates [1][12]. - The decline in topline was primarily due to a 12% year-over-year drop in the Individual Par business and a 16% decline in Group business, attributed to the impact of new product introductions [1][12]. - Margins improved by 154 basis points year-over-year, driven by a better product mix, including a focus on Non-par products and higher ticket size Par products, which offset the negative impacts from lower risk-free rates and new surrender payouts [1][2]. Summary by Sections Financial Performance - The report highlights that LIC generated an EVOP of Rs826 billion, with an Operating RoEV of 11.4%, supported by higher unwind and positive operating assumption changes. Notably, 50% of the economic variance was due to a fall in risk-free rates [2]. - The first-year commission rates decreased by 110 basis points in Q4, a significant reduction compared to the 250 basis points decline observed in Q3, indicating a recalibration of rates to maintain total payouts [2]. Product and Distribution Strategy - LIC has relaunched 13 new products in Q4, adding to the 38 launched in Q3, with a focus on selectively increasing premiums and adjusting ticket sizes and entry ages for key products [2]. - The Par segment continues to experience a decline, with a 12% year-over-year drop, as the agency adjusts to new products and lower commission payouts, although product margins have improved [2]. Future Outlook - Management anticipates a continued focus on Non-par products, which is expected to lead to margin improvements in the medium term [1][2]. - The report indicates that margin drivers will include persistency and product mix adjustments moving forward [2].

Investment Rating - The report maintains a Neutral rating for Motor Oil (MORr.AT) with a 12-month price target of €25.00, reflecting a potential upside of 6.1% from the current price of €23.56 [1][16]. Core Insights - Motor Oil reported an adjusted EBITDA of €216 million for 1Q25, which is 6% above the consensus estimate of €204 million, driven by strong marketing results, while adjusted net income was €96 million, slightly below the consensus of €99 million [1][17]. - The refining production volumes were strong at 2,695 kt, exceeding expectations, and total sales volumes were 2,920 kt, which was slightly below expectations [2][22]. - The adjusted refining margin for 1Q25 was reported at US$65/ton, slightly above the expected US$60/ton, leading to an adjusted EBITDA of €152 million for the Refining division [2][22]. - The company managed to maintain a total utilization rate of 90% of its refinery's nominal capacity, exceeding the guidance of 65-80% post-fire [2][22]. Financial Performance - The total revenue for 1Q25 was reported at €2,679 million, with operating expenses of €2,463 million, resulting in an adjusted EBITDA of €216 million [21]. - The company experienced a negative free cash flow (FCF) of -€260 million in 1Q25, attributed to high capital expenditures and operating cash flow challenges [19][23]. - For FY25, Motor Oil revised its capex guidance down to €500 million from €560 million, primarily due to the deferral of spending on renewable projects [15][27]. Future Outlook - The adjusted refining margin is expected to increase to $82/ton in 2Q25, driven by seasonal demand and supply constraints [14][26]. - The company anticipates receiving approximately €215 million in insurance compensation related to the fire incident, which is expected to support cash flow in the upcoming quarters [15][27]. - Motor Oil's strategic plan includes a multi-pillar decarbonization strategy targeting 2 GW of renewable energy capacity by 2030, with significant investments planned in renewable power and electric mobility [36][37].

28 May 2025 | 9:26AM EDT Rocket Pharmaceuticals Inc. (RCKT): Clinical Hold on Ph. 2 DD Trial Puts Largest Late-Stage Oppy At Risk; Downgrade to Sell w/ $2 PT On Tuesday (5/27), RCKT announced that the FDA placed a clinical hold on its pivotal Ph. 2 Danon disease (DD) trial. The hold was issued on 5/23 after a patient treated in early May experienced capillary leak syndrome that emerged ~1 week after RP-A501 dosing. Although there were some early signs the condition was beginning to improve, the patient subs ...

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a revised target price of HK$63 per share [1][18][41] Core Insights - Kuaishou reported in-line results for 1Q25 and maintained its FY25 guidance on advertising, eCommerce, and profitability, indicating a positive growth momentum for the remainder of the year [1][18] - The advertising momentum is expected to improve, with management targeting a 12% year-on-year growth in 2Q25 and further acceleration in the second half of the year [2][32] - The revenue outlook for Kling AI has been raised significantly, reflecting a faster expansion of paying users and a competitive position in the global market [4][20] Summary by Sections Advertising - Management anticipates a 12% year-on-year growth in advertising for 2Q25, with expectations for high-teens growth in 2H25 driven by contributions from mini-games and local services [32] - Kuaishou's advertising revenue is projected to reach Rmb 81,351 million in 2025, reflecting a 12% growth from the previous year [33] eCommerce - Kuaishou targets a 13-15% year-on-year GMV growth, supported by stable livestreaming and eCommerce contributions [3] - The overall take rate for eCommerce is expected to remain stable at around 4% for 2025, with plans to improve monetization of pan-shelf based eCommerce traffic in the second half of the year [35][36] Kling AI - The revenue outlook for Kling AI has been raised to US$100 million for FY25, driven by an increase in paying users and enhanced marketing efforts [4][20] - Kling AI is positioned competitively against global peers, with expectations for rapid revenue growth in the coming quarters [27][28] Financial Projections - Revenue estimates for 2025-2027 have been fine-tuned upwards by 0.7% to 1.1%, reflecting better performance in livestreaming and other services [18] - The projected total revenue for Kuaishou is Rmb 140,739.1 million in 2025, with an EBITDA of Rmb 31,483.3 million [16]

Investment Rating - The report maintains a "Buy" rating for CapitaLand Ascendas REIT (CLAR) with an unchanged DDM-based target price of S$3.06, indicating a potential upside of 17.2% from the current price of S$2.61 [2][11]. Core Insights - The proposed acquisition of 9 Tai Seng Drive (data center) and 5 Science Park Drive (business park) for S$700 million is expected to yield a net property income (NPI) yield of 7.2% and 6.1% respectively, with a projected DPU accretion of 1.36% for FY24 on a pro forma basis [1][2][6]. - The acquisition aligns with the strategic goal of deepening CLAR's presence in Singapore and the data center sector, expanding its Singapore portfolio from 65% to 67% of assets under management (AUM) and increasing its data center portfolio by 83% to over S$1 billion [2][10]. - Management plans to prioritize redevelopment and seek further acquisition opportunities in Singapore, Europe, and the US, while also working on divestments exceeding S$300 million for the remainder of the year [2][10]. Financial Overview - The acquisition will be funded through a combination of debt and net proceeds from a private placement of at least S$500 million, with expected gearing post-acquisition at 38.6%, slightly above the coverage average of 38.4% as of March 2025 [6][10]. - The first-year NPI yield for 9 Tai Seng Drive is projected at 7.2% before transaction costs, while 5 Science Park Drive is expected to yield 6.1% [6][10]. - The properties are currently under-rented by approximately 30% and 15% compared to market rates, indicating potential for rental uplift [10].

27 May 2025 | 10:02PM EDT Global: GS Economic Indicators Update: Growth Signal From Soft Data Improves in the US Please find an update of our proprietary global economic indicators below. The data behind these exhibits can be downloaded here. Interactive charts can be found on our living page here. Chart of the Week Exhibit 1: The Growth Signal From US Soft Data Has Improved on the Back of a Better Trade Policy Outlook -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3 2023-06-01 2023-0 ...

Investment Rating - The report indicates that Capri Holdings (CPRI) is currently Not Rated [8]. Core Insights - Capri Holdings reported F4Q adjusted EPS of -$4.90, significantly below consensus estimates of -$0.16 to -$0.13, primarily due to a tax valuation allowance charge [1] - Despite the overall challenges, CPRI delivered better-than-expected revenue trends in the quarter, with consolidated sales declining by -15.4% year-over-year to $1.035 billion, surpassing consensus expectations of $974.7 million to $1.004 billion [1][9] - The company updated its FY26 guidance, now expecting total revenues of $3.3 billion to $3.4 billion, down from approximately $4.1 billion previously, reflecting the exclusion of Versace's contribution [2][9] - Management remains optimistic about returning to growth in FY27 and beyond, although profitability was disappointing due to gross margin contraction [3] Revenue Performance - Michael Kors sales were reported at $694 million, better than consensus expectations of $687.8 million, with a decline of -15.6% year-over-year [1][9] - Jimmy Choo sales were approximately in line with expectations at $133 million, declining -2.9% year-over-year [1][9] - Versace sales were reported at $208 million, consistent with consensus, declining -21.2% year-over-year [1][9] Margin Analysis - The adjusted gross margin for F4Q25 was 61.0%, below consensus estimates of 62.7% and 61.8% [1][9] - Adjusted SG&A as a percentage of sales was 64.2%, better than Goldman Sachs estimates of 65.3% but higher than consensus at 62.6% [1][9] - Adjusted EBIT margins were reported at -3.2%, below consensus estimates of -2.6% to -2.4% [1][9] FY26 Guidance - The company expects operating income of approximately $100 million for FY26, down from $150 million previously, with consensus estimates at $145.3 million to $141.9 million [2][9] - Michael Kors is now guided for sales of approximately $2.75 billion to $2.85 billion, while Jimmy Choo sales are expected at $540 million to $550 million [9] - For Q1, CPRI guided revenue of $765 million to $780 million, with adjusted EPS expected to be between $0.10 and $0.15 [9]

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]