Report by MYST Advisors

The majority of ideas presented at MYST's latest buyside event were industrial-related, with themes including potential takeouts, SOTP simplification stories and power-related names. Stocks highlighted include:

Aptiv (APTV) - “GoodCo vs. BadCo” split to unlock hidden value of Connection Systems business. TP $125 (45% upside).
Bed Bath & Beyond (BBBY) - unappreciated assets create “zero enterprise value” amid positive FCF inflection. TP $28 (180% upside).
DuPont de Nemours (DD) - re-rating tailwinds fuelled by fundamental and technical catalysts. TP $115 (45% upside).
Idaho Strategic Resources (IDR) - enormous upside from potential US government partnership / investment.
Peloton (PTON) - new product launches + subscription price increase to accelerate turnaround.
Ralliant (RAL) - ignored "broken spin” poised for positive revision cycle. TP $60 (35% upside).

Materials

Report by Fermium Research

DD is benefiting from the recovery in its electronics segment and steady growth across its other businesses. The group has consistently exceeded quarterly guidance and in a market where earnings misses are common, DD’s reliability stands out. Meanwhile, the company is preparing to spin off its world class electronics division. IndustrialsCo is trading at ~9x EV/EBITDA with a case to be made for a materially higher multiple when the actual split occurs. With positive growth trends and a significant value-enhancing transaction ahead, DD remains a compelling investment.

Report by MYST Advisors

Interesting shift in sentiment at MYST's latest buy-side event as the vast majority of participants felt the market did in fact bottom in June (vs. only a handful 5 weeks ago). The most compelling short ideas presented included:

Pfizer (PFE) - Adverse impact of Inflation Reduction Act not fully appreciated by the Street. TP $33 (30% downside).
Olaplex (OLPX) - Extraordinarily high margins to contract as competition intensifies and growth slows. TP $8 (35% downside).
Rogers Corp (ROG) - Expensive acquisition by DuPont in doubt as China regulatory approval delays persist. TP $170 (35% downside).
Sprout Social (SPT) - Low quality Software Co. trades at absurd valuation despite declining net adds / higher churn. TP $43 (35% downside).

Report by MYST Advisors

Several ideas presented at MYST’s latest buy-side event focused on “misguided acquisitions”...

Carvana (CVNA) - Overpaying for “mediocre ADESA asset” increases balance sheet risk as competition intensifies (35% downside).
Celanese (CE) - “Massively overearning” in Acetic Acid segment; DuPont M&M deal increases leverage / cyclicality (30% downside).
Synaptics (SYNA) - Expensive roll-up of low-quality semiconductor assets at cyclical peak (45% downside).