Consumer Discretionary

Report by Housing Research Center

Alex Barron believes the acquisition is an important signal for the US homebuilder sector, supporting his view that the bottom of the cycle is here and now is an opportune time to buy into the sector at great valuations. The deal values TMHC at 1.24x 2Q26 book value, 1.17x Alex’s 2026E book value and 12.9x 2026E EPS. His fair value estimate was $72/share. While Berkshire is unlikely to pursue an immediate acquisition spree, the deal opens the door for TMHC to become a larger consolidator over time. Alex also notes rising sector M&A, including Dream Finders attempted hostile bid for Beazer Homes, which he thinks would likely need to move closer to 0.8-0.9x book value to succeed.

Technology

Report by Aequitas Research

Still needs a whole lot of hope to justify valuation - Sumeet Singh runs the rule over India’s biggest IPO which is backed by the likes of Alibaba, Softbank and Berkshire Hathaway. Paytm looks very expensive when compared to some of the superapps (SEA / MercadoLibre), which have all grown much faster. The declining take rate in its payment services segment is also a concern, while a drop in marketing and promotion costs could impact customer acquisition and growth. Paytm will have to keep a very tight lid on expenses to make a profit even in FY24. One to avoid.