Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies, but it highlights the underpenetrated B2B payments opportunities relevant to investors [1][3][11]. Core Insights - The B2B payments landscape is evolving with significant growth potential, particularly in accounts payable (AP) and accounts receivable (AR) automation, which presents opportunities for companies like Billtrust, Finexio, Mesh Payments, and ProfitSolv [1][3][11]. - The revenue models of the discussed companies vary, with some relying heavily on subscription fees while others are transitioning towards a mix of payments and software revenue [1][2][3][5]. - Virtual card usage is on the rise, with companies reporting strong growth without significant pressure on fees, indicating a favorable market environment for B2B payment solutions [1][2][3][5]. Company Summaries Billtrust - Billtrust is a leader in AR automation and B2B payments, processing over $1 trillion in invoices since its inception in 2001, with a 2022 total payment volume (TPV) exceeding $100 billion, reflecting a 35% year-over-year increase [1][2][11]. - The company operates a revenue model split approximately 50/50 between payments and software, with a focus on accelerating cash flow and improving customer satisfaction [2][11]. Finexio - Finexio specializes in end-to-end AP payment solutions, primarily serving middle-market to enterprise businesses, with a current payment volume run rate of approximately $3.5 billion [3][13]. - The company has experienced around 100% revenue growth in 2023 and has a virtual card penetration rate of about 12% of its volumes [3][13]. Mesh Payments - Mesh Payments offers an all-in-one travel and expense management platform, integrating corporate cards and expense management for global enterprises [4][15]. - The company has over 1,500 enterprise customers and has recently launched new products to enhance its service offerings [4][15]. ProfitSolv - ProfitSolv provides a suite of billing, payments, and software solutions for professional services firms, with approximately 94% of its revenue coming from subscriptions [5][17]. - The company has made significant acquisitions to expand its product offerings and currently serves over 100,000 professionals across various sectors [5][17].

Global Research and Evidence Lab 14 August 2024 LatAm Oil & Gas LightHouse: PBR, EC, YPF, RRRP, RECV, RAIZ, SMTO, TTEN, ORBIA, Fuel Dist. (3x), Agri. (2x), Global Oil Integrated and Junior E&P: PBR, EC, YPF, RRRP, RECV PBR: Government participates in Petrobras' strategic decisions. EC: We published a report on Ecopetrol's 2Q24 earnings result; see "Strong output now, but challenging horizons". YPF: CEO expects Vaca Muerta Sur (VMS) oil pipeline to be the first RIGI investment. RRRP: Jive Investments holds a ...

Investment Rating - The investment rating for TOTVS is Neutral, with a price target of R$33.50, implying a ~24x multiple to 2025E earnings [16]. Core Insights - The acquisition of Linx by TOTVS is seen as strategically positive, as it complements TOTVS' portfolio and could unlock new growth avenues, particularly in the TechFin vertical [4][7]. - Linx's current monetization is only 0.3% of its estimated R$350 billion GMV, indicating significant room for expansion [3]. - The integration of Linx's software solutions into TOTVS' offerings will require adaptation for small and medium-sized businesses (SMBs), which may necessitate further investments [3][4]. Summary by Sections TOTVS and Linx Acquisition - The CEO of TOTVS stated that acquiring Linx remains strategic, as Linx's capabilities complement TOTVS' offerings [1]. - Linx was acquired by Stone in 2020 for R$6.8 billion, and the integration has been ongoing since then [1][2]. Market Position and Client Base - Linx serves approximately 70,000 mid-large retailers with a GMV of R$300 billion, providing a new client base for TOTVS [1]. - Most of Linx's clients are larger enterprises, with only 11% being SMBs, which presents a challenge for scaling Linx's solutions to TOTVS' typical client base [3][4]. Financial Metrics and Growth Potential - The average monthly ticket for clients using Linx's ERP/POS software is R$160, supporting the potential for increased cross-selling opportunities [2]. - The report highlights that 50% of Linx's sub-acquiring clients have migrated to Stone, indicating successful integration efforts [2]. Valuation and Market Outlook - The valuation for Stone is based on a 2025E PE target multiple of 11x, reflecting the broader economic environment and regulatory changes impacting the Brazilian financial sector [8]. - The report suggests that TOTVS could benefit from future cross-selling of Business Performance solutions to Linx's customer base [4].

Global Research and Evidence Lab 14 August 2024 First Read Victoria's Secret & Co CEO Appointment as Positive Market Likely to see 2Q EPS Upside and What happened: VSCO pre-announced above-consensus 2Q EPS... VSCO pre-announced 2Q24 results and now anticipates $0.34-$0.39 EPS, above its prior $0.05-$0.20 outlook. We note the Street has been modeling $0.16 Q2 EPS. Within its new Q2 outlook, VSCO expects net sales to be down 1-2% vs. prior down 1-3% y/y. VSCO also raised its Q2 EBIT dollar guidance to $57-$62 ...

Global Research and Evidence Lab 14 August 2024 Equities UBS Railroads Weekly Volume +3.6% In Week 32; Western Rails Volume Growth Driven By Recent Shift of IM Volumes Americas Railroads Thomas Wadewitz Analyst thomas.wadewitz@ubs.com +1-212-713 6116 Michael Triano Analyst michael.triano@ubs.com +1-212-713 3822 Michael DiMattia Analyst michael.dimattia@ubs.com +1-617-748 5628 Volume up +3.6% y/y in Wk 32; Stacked was down -1.3% Volumes in Week 32 rose +3.6% y/y, following +3.5% growth in Week 31 and +2.9% g ...

Investment Rating - The report assigns a "Buy" rating for Ipsen SA with a 12-month price target of €145.00, indicating a potential upside from the current price of €106.80 [2][15][18]. Core Insights - Ipsen SA is focused on the launch of its drug Igirvo, recently approved for a rare liver disease, which is in competition with Gilead's Livdelzi [2]. - The report highlights the comparable indications and usage sections of both Igirvo and Livdelzi, noting that both drugs are approved for 2L primary biliary cholangitis (PBC) [2]. - Physician feedback suggests that the lack of pruritus indication for Livdelzi may not significantly impact the competitive landscape for Igirvo [2]. - The report anticipates positive sentiment support for Ipsen, especially following a recent stock pullback [2]. Financial Forecasts - Revenue projections for Ipsen are expected to grow from €3,306 million in 2023 to €4,526 million by 2028 [2]. - EBIT is forecasted to increase from €1,001 million in 2023 to €1,480 million in 2028 [2]. - Net earnings are projected to rise from €763 million in 2023 to €1,140 million in 2028 [2]. - The diluted EPS is expected to grow from €9.15 in 2023 to €13.67 in 2028 [2]. Valuation Methodology - The valuation of Ipsen is based on a 50/50 blend of a DCF-based sum-of-the-parts (SOTP) analysis and peer multiples [3][6]. Market Outlook - The report indicates a forecast price appreciation of 35.8% and a forecast stock return of 36.9%, suggesting a strong investment opportunity relative to the market return assumption of 8.0% [4].

Global Research and Evidence Lab 14 August 2024 First Read Hydro One Limited In Line. 2Q'24 Adj. EPS C$0.49 vs. C$0.49 Cons/ C$0.48 UBSe Q: How did the results compare vs expectations? A: H reported 2Q'24 Adjusted EPS C$0.49 versus C$0.49 consensus, C$0.48 UBSe, and C$0.44 2Q'23. Q: What were the most noteworthy areas in the results? A: Drivers for the quarter were driven by rates and higher peak demand offset by taxes, D&A, and asset removal costs. The company has filed for approval with the OEB to constru ...

Global Research and Evidence Lab 14 August 2024 First Read Progressive Corporation July 2024: PIF Better; underlying loss ratio below consensus How will the stock react? A: We expect a positive reaction to the better-than-expected PIF growth in July while the underlying loss ratio was a little worse than consensus expectations (but beat UBSe). PIF growth accelerated sequentially and was better than expected. PGR should continue to gain market share in the near term as it loosens underwriting restrictions qu ...

Global Research and Evidence Lab 14 August 2024 Brazilian Utilities Daily Current Opening of the free market may be 'immediate' after approval of reform The Minister of Mines and Energy, Mr. Alexandre Silveira, said that the structural measures will come through a PL, which should be presented in September. In July, Mr. Silveira had promised the regulation, which could come through a Provisional Measure (MP), for August. One of the foundations of the text of the bill will be the long-awaited full opening of ...

Global Research and Evidence Lab 14 August 2024 First Read Serena Energia SA 2Q24 - Weak winds driving results Q: How did the results compare vs expectations? Serena reported results that were below the company's expectations given poorer wind resources. Serena also updated its 2024 guidance, now expecting a mid point guidance -5% below its guidance at the start of the year, adjusting to R$1,821mn from R$1,917mn vs. UBSe 2024 adjusted EBITDA of R$1,781mn. Serena in 1H24 has achieved 40% of the new FY guidan ...