eir Q4 23: Solid numbers and good guidance

We recently initiated on eir (read that report HERE). We felt that eir was well positioned to grow FCF thanks to SR led EBITDA growth, and falling capex. Eir is moving toward that outcome, with some solid guidance for 2024 (low single digit EBITDA growth vs c-3% y/y for 2023). Q4 23 was broadly as expected, with good MSR growth, solid fixed growth, and flat-ish EBITDA. All-in-all, we remain of the view that although eir spreads are quite tight, they could be tighter still in our view given the outlook (asset cover) and leverage (possible rating upgrade to come?).

EIR (initiation of coverage) Another Good investment by Xavier Niel

We recently wrote about whether or not Xavier Niel companies deserved to trade at tight spreads – HERE. We concluded that they do, if they are well run good businesses. Eir is one such business. Its spreads are quite tight, but could be tighter still in our view given the outlook (asset cover) and leverage (possible rating upgrade to come?).

Palo Alto Networks 1FQ25: Platformization progressing and going mainstream. Buy, $410 TP.

Nvidia 3FQ25: beat & guide up; Buy, $173 TP.

Nvidia reported 3FQ25 yesterday.

Ad Expert Call Takeaways: GOOGL Ad Tech, TTD, PMax, Advantage+, and the role of Clouds

Yesterday, we hosted a call with Jeremy Woodlee, CEO of Santa Ynez Partners, a boutique advisory firm focused on digital media and ad tech. Previously, he spent three years at Accenture leading its global relationship with Google Ads after spending 11 years at Google, and three years at Magnite (fka Rubicon Project).