Growth Stock Thoughts

• Flutter’s FanDuel and DraftKings command a combined 66.1% market share in the $117 billion US sports betting market.
• DraftKings is guiding to 30% revenue growth for 2025, with adjusted EBITDA margins expanding from 3.8% to 13.5%.
• Flutter projects 28% US revenue growth for 2025, with adjusted EBITDA margins expanding to 15.2% from 8.7%.
• DraftKings expects net debt-to-adjusted EBITDA to decline below 1.5x by year-end 2025, with potential free cash flow positive achievement during the year.
• Flutter is already free cash positive, generating $805 million during 2024, with a net debt to adjusted EBITDA of 1.4x with $3.5 billion in cash on hand.

• Shift4 is a fully integrated payment processor targeting underserved verticals like hospitality, restaurants and events.
• Management is guiding to >30% compound annual revenue growth to 2028 with at least 300bps of operating margin expansion.
• Shift4’s acquisition of Global Blue will accelerate European expansion and onboards a luxury-focused book of business.
• Global Blue holds a 70% market share in VAT refunds in Europe, with customers concentrated in luxury retail including LVMH and Burberry with an average customer relationship of over 20 years.
• Global Blue also holds a 20% market share in point-of-sale currency exchange in the EU, a 96.3% gross margin business.
• Shift4’s point-of-sale system maintains the highest customer satisfaction rate in the restaurant industry, with 99% restaurant retention.

• Increased capital expenditure to $75 billion in 2025 in order to expand Google Cloud’s infrastructure, positioning the company for continued AI and cloud growth.
• Alphabet’s proprietary Tensor Processing Units (TPU) infrastructure provides significant cost advantages over competitors who rely on expensive Nvidia chips.
• AI tools are proving complementary rather than competitive to search, with hyper-specific AI queries creating new monetization opportunities through better ad targeting.
• Antitrust remedies like Chrome divestiture are technically impractical and would be punitive rather than beneficial to consumers, making them unlikely to succeed.
• The company maintains a fortress balance sheet with $95.7 billion in cash and $72.8 billion in annual free cash flow generation.

• RH has transformed from mid-market furniture retailer to luxury lifestyle brand through opulent galleries and integrated hospitality.
• Expects return to positive free cash flow during 2025, as well as 10-13% revenue growth despite tariff and macroeconomic impacts.
• The stock has collapsed 37.9% over trailing twelve months as markets fixate on short-term European execution risk and tariff pressures.
• RH’s rejection of digital advertising in favor of curated print Sourcebooks creates authentic demand that resonates with demographics fatigued by ubiquitous e-commerce strategies
• Asset-light expansion model with landlords funding large portions of buildout costs through sale-leaseback structures enables geographic scaling without capital intensity

• APTV is spinning off its lower-margin electronic distribution business, retaining high-margin technology segments.
• Spin-off structured as tax-free distribution to shareholders, with new APTV retaining investment grade rating while separated EDS business expected to be sub-investment grade.
• 1.6x book-to-bill, expecting around $31 billion in gross new bookings during 2025.
• $1.1 billion in cash on hand, and more than $1.6 billion in annual free cash generated during 2024.
• Operating margins improved 150bps to 10.7% in 2024 through workforce reductions and automation, with guidance for 12.1% operating margins in 2025 and automation targets of 30% by 2026.
• Non-automotive revenues providing buffer during automotive production decline (estimated 5-7% contraction in 2025), with defense/aerospace higher-margin business offsetting cyclical headwinds

• Melco’s strategic shift to an asset-light model promises improved capital efficiency while maintaining its strong 15.6% Macau market share.
• Ongoing property renovations across the portfolio to organically attract high-value customers after junket market contraction.
• 2025 Projected capex increase of 70.5% to $415 million, backed by a $1.1 billion cash position.
• Targeted expansion into emerging markets like Sri Lanka and potentially Thailand creates long-term growth avenues beyond the core Macau operations.
• Despite 6.1x net debt to EBITDA ratio, management’s focus on deleveraging and potential Manila asset sale should strengthen the balance sheet.

• Trading at just 5.6x PE following a 38.7% YTD decline.
• PVH’s strategic consolidation of its Tommy Hilfiger and Calvin Klein brands aims to restore pricing power and improve brand control, driving longer-term earnings power.
• Despite operational challenges, PVH maintains robust free cash flow of $715.3 million over the trailing twelve months, and a healthy balance sheet of 2.6x debt to EBITDA.
• While China represents 6% of revenue and 16% of EBT, PVH’s addition to China’s “unreliable entity list” appears to be priced in.
• PVH’s strategic initiatives including organic e-commerce growth and manufacturing consolidation position the company for potential margin improvement toward its long-term 15% operating margin target.

• 1.25% Yield
• Owns 167,000 acres of land in the Panhandle of Florida, which we believe can be monetized at a current present value of at least $100 per share.
• The major Bay-Walton Sector Plan covering 110,500 acres slated for development through 2064, including 170k residential units and 22 million sqft of commercial space.
• Special zoning status reduces regulatory hurdles for planned residential and commercial development.
• Record-setting year for hospitality segment offset the slowdown in the region’s housing market after a boom in 2021-22.
• The Bay-Walton County area has an annual population growth rate of 3.2%, providing a secular demographic tailwind.

• First to market 100% silicon anode lithium-ion battery, with 30% better energy density and faster charging than graphite anode batteries.
• Fab2 Production ramp in Malaysia, expecting first customer samples by mid-2025 and full serialized production by the end of September 2025.
• OEM agreements secured with 2 of the top 8 global smartphone manufacturers, a major IoT company, and 2 wearables customers.
• Automotive potential with a non-binding agreement to co-develop larger-scale battery cells for EV (Electric Vehicle) applications.
• Raised $100M in 2024, has enough funding to operate until at least September 2025.

• Production increased 11.5% for the first 9 months of 2024, though a lower pricing environment had sales up 8.3% over the same period.
• Targeting leverage ratio of 1.0x debt to adjusted EBITDA, currently 1.59x.
• After REI reaches its target leverage, we expect management to ramp organic production or engage in another acquisition.
• Based on transactions of similar asset profiles, REI could be worth $2.44/share in private market value.

• MYT Netherlands Parent (MYTE), operating Mytheresa, will acquire Yoox-Net-a-Porter (YNAP) from Richemont and rebrand as LuxExperience.
• The combined entity is expected to reach $3.2 billion in gross merchandise value in 2025, with ambitions to grow into a $4 billion gross merchandise value luxury e-commerce giant by 2030.
• Richemont will provide MYTE with a $106 million working capital facility and YNAP’s $590 million in cash, while MYTE issues 43 million new shares to Richemont.
• The luxury e-commerce market is expected to double to $180 billion by 2030, with the total luxury market growing at 3-7% annually.
• YNAP generates 45% of revenue from North America, offering MYTE an opportunity to accelerate US growth.