Special Sits Idea Forum

MYST Advisors

While all the stocks presented at MYST's latest buyside event could be considered undervalued, many offered significant (i.e. >50%) upside. The most differentiated ideas included: Blackbaud (improving fundamentals more apparent post-EVERFI divestiture; potential M&A target); HealthEquity (new legislation fuelling dramatic TAM expansion + bond portfolio repricing tailwinds); and JBS (multiple to expand as US listing drives increased passive ownership / index inclusion). More familiar names discussed included: Fluor (huge NuScale Power (SMR) monetisation catalyst not reflected in Street estimates); Teva Pharmaceutical (generics cash cow enabling innovative branded portfolio pipeline development); and Warner Bros. Discovery (well positioned for media consolidation wave amid forthcoming business separation).

- 27 June, 2025

Granite Construction (GVA)

Industrials

Thompson Research Group

TRG has maintained a bullish view of GVA in the past few years, as the company worked down its Old Risk Portfolio and executed on a low-risk consistent growth strategy. The stock is valued at ~5x EV/EBITDA, which TRG believes is overly punitive and lumps it in with Fluor and Tutor Perini. They believe this is the wrong peer set. Instead, GVA should be compared to Construction Partners and Knife River, who sell at ~10x EV/EBITDA. These three companies have vertically integrated operations (materials producers + contracting services). ROAD and KNF have consistently produced better margins than GVA, but GVA’s 2024 targets show that it can close that gap.

- 15 September, 2023