YB new stock pitches (Wed, Jul 2)

APi Group Corporation (APG), up 43% since last November, is setting new financial targets for 2028: $10.4 billion in revenue (10.4% CAGR), 16% EBITDA margin (up from current 13%), and 60%+ of revenue from recurring inspection services (currently 55%). The company plans to achieve $3.4 billion in incremental revenue through $1.4 billion in organic growth, $1 billion from smaller acquisitions, and $1 billion from large platform acquisitions. APG expects to generate $3-4 billion in cumulative free cash flow through 2028 with 75% FCF conversion, allocating $1 billion for share buybacks. The investment thesis centers on Chairman Martin Franklin (11% owner) guiding management to consistently raise targets while improving branch margins from the current 17% toward 20% in North America. With slight multiple contraction to 15x EV/EBITDA, a buyback program averaging $58 per share, and leverage maintained at 2.7x, APG could reach $80 per share by 2028, representing 57% upside from current levels.

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RADCOM Ltd. (RDCM), a leader in telecom network monitoring tools, is capturing significant 5G market share from legacy competitors like Netscout, EXFO, and Viavi. The company reported impressive 17.5% year-over-year growth and raised its 2025 revenue guidance to 15-18%. Despite 50% customer concentration with AT&T, this relationship is stable with a recent 15% contract expansion. New CEO Benny Eppstein is driving growth through strategic partnerships with ServiceNow (providing automated network discovery solutions), Infosys (accessing new telecom clients), and Nvidia (leveraging DPUs to collect comprehensive user plane data). RADCOM achieved record financial performance with 19% operating margin, 75.3% gross margin, and $99 million in net cash (45% of market cap), with plans for a tuck-in acquisition followed by share buybacks. Despite strong fundamentals, RADCOM remains significantly undervalued at 1.6x EV/Sales and 8.8x P/E on 2025 figures, compared to peers Keysight (5.4x EV/Sales, 23x P/E) and Viavi (2.2x EV/Sales, 20x P/E), with potential for rerating as it secures new logos and delivers continued beat-and-raise results.

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LuxExperience (LUXE) represents a transformative merger creating the largest digital luxury player as competitors exit, with shares projected to reach $20 in two years. This special situation emerged when Richemont, under activist pressure to refocus on its core business, gave away YNAP plus €550 million cash for a 33% stake in LUXE ($13/share value), after a failed Farfetch deal. LUXE operates in a secular growth market expected to double by 2030, offering products across the luxury spectrum under CEO Michael Kliger's experienced leadership. Significant synergy potential exists in SG&A and IT integration, with management presenting a five-year plan through June 2030. The company has two potential paths forward: fully integrating all assets (Plan A) or shutting down/selling the off-price business (Plan B), both offering substantial upside at conservative valuations. Additionally, LUXE offers a call option on China's recovery, which represents 25% of global luxury spending but remains depressed.

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