Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>Our core pick is flow monster CME Group for its dominant franchise through its trading and post-trading (including clearing) operations in interest rates, equity indices, foreign exchange and commodity derivatives</li>
<li>We also like Deutsche Borse as the European flow monster and for its attractive valuations and gearing into greater European securities activity</li>
<li>We downgrade Japan Exchange to a neutral from buy for its fair valuations, as we see more compelling opportunities with CME group and Deutsche Borse; CBOE is one to watch</li>
</ul>


Our core pick is flow monster CME Group for its dominant franchise through its trading and post-trading (including clearing) operations in interest rates, equity indices, foreign exchange and commodity derivatives
We also like Deutsche Borse as the European flow monster and for its attractive valuations and gearing into greater European securities activity
We downgrade Japan Exchange to a neutral from buy for its fair valuations, as we see more compelling opportunities with CME group and Deutsche Borse; CBOE is one to watch


Developed Market Exchanges – Integrated Flow Monsters and Big Data Monetisers

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Intercontinental Exchange / Equity Bottom-Up

<ul><li>Intercontinental Exchange demonstrated strong financial performance in the second quarter of 2024, achieving record net revenues of $2.3 billion, which is a 7% increase year-over-year on a pro forma basis.</li><li>Adjusted operating expenses were controlled effectively, bringing them to a total of $947 million, which is only a 1% increase from the previous year, also on a pro forma basis.</li><li>The company's balance sheet showed resilience with adjusted leverage reducing from 3.9x at the end of the first quarter to 3.7x pro forma EBITDA by the end of the second quarter.</li></ul>

Intercontinental Exchange demonstrated strong financial performance in the second quarter of 2024, achieving record net revenues of $2.3 billion, which is a 7% increase year-over-year on a pro forma basis.Adjusted operating expenses were controlled effectively, bringing them to a total of $947 million, which is only a 1% increase from the previous year, also on a pro forma basis.The company's balance sheet showed resilience with adjusted leverage reducing from 3.9x at the end of the first quarter to 3.7x pro forma EBITDA by the end of the second quarter.

Intercontinental Exchange: Sustaining Growth Through Strategic Acquisitions! - Major Drivers

<ul><li>Intercontinental Exchange (ICE) reported records in Q1 2024 with net revenue of $2.3 billion; a 5% increase compared to the prior year.</li><li>There were also some highlights, such as $1.4 billion of record adjusted operating income representing an 8% year-over-year growth.</li><li>ICE also saw record first quarter net revenues totaling a record $1.2 billion which is up 11% year-over-year.</li></ul>

Intercontinental Exchange (ICE) reported records in Q1 2024 with net revenue of $2.3 billion; a 5% increase compared to the prior year.There were also some highlights, such as $1.4 billion of record adjusted operating income representing an 8% year-over-year growth.ICE also saw record first quarter net revenues totaling a record $1.2 billion which is up 11% year-over-year.

Intercontinental Exchange Inc. (ICE):  Strong Global Commodity and Financial Risk Management Businesses! - Major Drivers

<ul><li>Intercontinental Exchange Inc.</li><li>(ICE) delivered strong financial results for the fourth quarter of 2023, posting a record net revenue of $2.2 billion, representing a 7% increase compared to the same period last year.</li><li>The record figures were driven by lower compensation expense and accelerated expense synergies which led to earnings per share of $1.33, up 6% year-on-year.</li></ul>

Intercontinental Exchange Inc.(ICE) delivered strong financial results for the fourth quarter of 2023, posting a record net revenue of $2.2 billion, representing a 7% increase compared to the same period last year.The record figures were driven by lower compensation expense and accelerated expense synergies which led to earnings per share of $1.33, up 6% year-on-year.

Intercontinental Exchange Inc. (ICE): Growing the Mortgage Technology Sector with Black Knight Acquisition - Major Drivers

<ul>
<li>We rate Japan Exchange as our 2024 high conviction buy in exchanges, for its attractive valuations, as well as its potential for increased market activity and big data revenue growth</li>
<li>We believe that Japan Exchange is the exception to the rule that DM exchanges need to diversify their revenue bases, as it is under less de-regulatory pressure</li>
<li>We also stick with Hong Kong Exchange as the deep value pick, as well as Deutsche Borse; we remain negative on Coinbase</li>
</ul>


We rate Japan Exchange as our 2024 high conviction buy in exchanges, for its attractive valuations, as well as its potential for increased market activity and big data revenue growth
We believe that Japan Exchange is the exception to the rule that DM exchanges need to diversify their revenue bases, as it is under less de-regulatory pressure
We also stick with Hong Kong Exchange as the deep value pick, as well as Deutsche Borse; we remain negative on Coinbase


Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

United States

Intercontinental Exchange, Inc. operates global commodity and financial products marketplaces.  The Company operates electronic energy markets and soft commodity exchanges as well.  ICE offers access to contracts based on crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities including cocoa, coffee, cotton, orange juice, and sugar.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Intercontinental Exchange (ICE US)

Developed Market Exchanges – Integrated Flow Monsters and Big Data Monetisers

CME Group is our top pick for its dominant market position in key US derivatives, Deutsche Borse is also on the buy list. We downgrade Japan...

Victor Galliano

Intercontinental Exchange: Sustaining Growth Through Strategic Acquisitions! - Major Drivers

Intercontinental Exchange demonstrated strong financial performance in the second quarter of 2024, achieving record net revenues of $2.3 billion,...

Baptista Research

Intercontinental Exchange Inc. (ICE): Strong Global Commodity and Financial Risk Management Businesses! - Major Drivers

Intercontinental Exchange (ICE) reported records in Q1 2024 with net revenue of $2.3 billion; a 5% increase compared to the prior year. There were...

Baptista Research

Intercontinental Exchange Inc. (ICE): Growing the Mortgage Technology Sector with Black Knight Acquisition - Major Drivers

Intercontinental Exchange Inc. (ICE) delivered strong financial results for the fourth quarter of 2023, posting a record net revenue of $2.2...

Baptista Research

Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Developed Market Exchanges – Integrated Flow Monsters and Big Data Monetisers

​CME Group is our top pick for its dominant market position in key US derivatives, Deutsche Borse is also on the buy list. We downgrade Japan...

Victor Galliano

Intercontinental Exchange: Sustaining Growth Through Strategic Acquisitions! - Major Drivers

Intercontinental Exchange demonstrated strong financial performance in the second quarter of 2024, achieving record net revenues of $2.3 billion,...

Baptista Research

Intercontinental Exchange Inc. (ICE): Strong Global Commodity and Financial Risk Management Businesses! - Major Drivers

Intercontinental Exchange (ICE) reported records in Q1 2024 with net revenue of $2.3 billion; a 5% increase compared to the prior year. There were...

Baptista Research

Intercontinental Exchange Inc. (ICE): Growing the Mortgage Technology Sector with Black Knight Acquisition - Major Drivers

Intercontinental Exchange Inc. (ICE) delivered strong financial results for the fourth quarter of 2023, posting a record net revenue of $2.2...

Baptista Research

Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

​Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...

Victor Galliano

CME Group is our top pick for its dominant market position in key US derivatives, Deutsche Borse is also on the buy list. We downgrade Japan...

Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...