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.

Equity Bottom-Up

<ul>
<li>We re-instate our buy on Inter for its healthy credit quality credentials, improving operating returns and its attractive valuations to premium earnings growth potential</li>
<li>Nubank remains a neutral - due to valuation - but is one to watch for its strong operational returns supported by its high activity rate; Kakaobank is also on watch</li>
<li>PicPay is deep value but its rapid deterioration in credit quality and cost of risk are serious challenges; we believe that recent IPO Agibank is another relatively challenged Brazilian neobank</li>
</ul>


We re-instate our buy on Inter for its healthy credit quality credentials, improving operating returns and its attractive valuations to premium earnings growth potential
Nubank remains a neutral - due to valuation - but is one to watch for its strong operational returns supported by its high activity rate; Kakaobank is also on watch
PicPay is deep value but its rapid deterioration in credit quality and cost of risk are serious challenges; we believe that recent IPO Agibank is another relatively challenged Brazilian neobank


EM Neobanks – Re-Instating the Buy Rating on Inter (INTR US)

<ul>
<li>We add PayPay to our coverage and to our payments company buy list for its GARP qualities</li>
<li>We also add Klarna to the buy list, for its deep value credentials across the broader peer group, and also fro its improving EBITDA margin</li>
<li>We keep Affirm on the sell list, creating an effective pairs trade in the BNPL space with a buy on Klarna and a sell on Affirm</li>
</ul>


We add PayPay to our coverage and to our payments company buy list for its GARP qualities
We also add Klarna to the buy list, for its deep value credentials across the broader peer group, and also fro its improving EBITDA margin
We keep Affirm on the sell list, creating an effective pairs trade in the BNPL space with a buy on Klarna and a sell on Affirm


PayPay (PAYP) Post-IPO and Payment Companies Update

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

Equity Capital Markets

<ul>
<li>Given the market backdrop and the performance of recent comps, we believe a cautious approach should be taken regarding this IPO. </li>
<li>Differentiated hybrid physical-digital model and proprietary technology support strong growth, with revenues and clients compounding above 30% annually.</li>
<li>Large untapped market opportunity remains, though recent Latin American IPO aftermarket weakness tempers near-term risk-reward expectations.</li>
</ul>


Given the market backdrop and the performance of recent comps, we believe a cautious approach should be taken regarding this IPO. 
Differentiated hybrid physical-digital model and proprietary technology support strong growth, with revenues and clients compounding above 30% annually.
Large untapped market opportunity remains, though recent Latin American IPO aftermarket weakness tempers near-term risk-reward expectations.


AGI Inc. (AGBK): Caution Needed Around Brazilian Fintech IPO Following Comp Underperformance

<ul>
<li>Brazilian fintech AGI (AGBK US) filed for a potential Q1 IPO, following PicPay, as Brazil-based issuers increasingly access U.S. public markets.</li>
<li>AGI serves 6.4 million active clients through a hybrid Smart Hub and digital model, delivering secured lending, banking, and insurance to underserved Brazilians.</li>
<li>Strong growth and large TAM underpin the story, with rapid client and revenue expansion, modest market share, and a R$2.0 trillion addressable market.</li>
</ul>


Brazilian fintech AGI (AGBK US) filed for a potential Q1 IPO, following PicPay, as Brazil-based issuers increasingly access U.S. public markets.
AGI serves 6.4 million active clients through a hybrid Smart Hub and digital model, delivering secured lending, banking, and insurance to underserved Brazilians.
Strong growth and large TAM underpin the story, with rapid client and revenue expansion, modest market share, and a R$2.0 trillion addressable market.


AGI Inc. (AGBK): Peeking at the IPO Prospectus of a Brazilian Financial Services Company

Brazil

PicS N.V. operates as a digital financial services company that provides a digital wallet and application for individuals and businesses in Brazil. The company offers a range of transactional products, including Pix instant payment system, peer-to-peer transfers, bill payments, and various loan and insurance products. It also provides QR code payment solutions, banking services, and advertising platforms for small and medium-sized businesses. PicS N.V. was founded in 2012 and is headquartered in São Paulo, Brazil.

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PicS (PICS US)

EM Neobanks – Re-Instating the Buy Rating on Inter (INTR US)

Upgrading Inter to buy for its sound credit quality and valuations-to-growth, global benchmark Nubank is one to watch; PicPay and Agibank face NPL...

Victor Galliano

PayPay (PAYP) Post-IPO and Payment Companies Update

Adding GARP play PayPay and deep value Klarna to buy list for their growth potential, while keeping Affirm on sell list for pairs trade strategy...

Victor Galliano

AGI Inc. (AGBK): Caution Needed Around Brazilian Fintech IPO Following Comp Underperformance

Cautious approach advised for upcoming IPO due to market conditions and Latin American IPO weakness. Strong growth potential with hybrid physical...

IPO Boutique

AGI Inc. (AGBK): Peeking at the IPO Prospectus of a Brazilian Financial Services Company

Brazilian fintech AGI files for potential Q1 IPO in the U.S., serving 6.4 million clients with secured lending, banking, and insurance for...

IPO Boutique

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EM Neobanks – Re-Instating the Buy Rating on Inter (INTR US)

​Upgrading Inter to buy for its sound credit quality and valuations-to-growth, global benchmark Nubank is one to watch; PicPay and Agibank face NPL...

Victor Galliano

PayPay (PAYP) Post-IPO and Payment Companies Update

​Adding GARP play PayPay and deep value Klarna to buy list for their growth potential, while keeping Affirm on sell list for pairs trade strategy...

Victor Galliano

AGI Inc. (AGBK): Caution Needed Around Brazilian Fintech IPO Following Comp Underperformance

​Cautious approach advised for upcoming IPO due to market conditions and Latin American IPO weakness. Strong growth potential with hybrid physical...

IPO Boutique

AGI Inc. (AGBK): Peeking at the IPO Prospectus of a Brazilian Financial Services Company

​Brazilian fintech AGI files for potential Q1 IPO in the U.S., serving 6.4 million clients with secured lending, banking, and insurance for...

IPO Boutique

Upgrading Inter to buy for its sound credit quality and valuations-to-growth, global benchmark Nubank is one to watch; PicPay and Agibank face NPL...

Adding GARP play PayPay and deep value Klarna to buy list for their growth potential, while keeping Affirm on sell list for pairs trade strategy...

Cautious approach advised for upcoming IPO due to market conditions and Latin American IPO weakness. Strong growth potential with hybrid physical...

Brazilian fintech AGI files for potential Q1 IPO in the U.S., serving 6.4 million clients with secured lending, banking, and insurance for...