Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for over 12 years, as well as more recently covering the Italian banks. He has worked in sell side equity research for 30 years in a career spanning Barclays, HSBC, BBVA LatInvest, Barings and NatWest.
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.

Financials & FinTech research

BNPL Companies; Risk on Phase, Stick with Buy on Klarna (KLAR US), Lifting Short on Affirm (AFRM US)

BNPL Companies – Re-Iterating Our Bearish View on Affirm (AFRM US)

PayPay (PAYP) Post-IPO and Payment Companies Update

PayPay Corporation (PAYP):  Discounted Japanese Fintech Debuts Strongly Despite Pricing Below Range

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>At the macro-level, we believe that the “K-shaped” nature of consumer credit in the US economy may put greater pressure on delinquency, including the BNPL segment  </li>
<li>We reinstate the sell rating on Affirm shares, after its strong performance and stretched valuation, especially in terms of market cap to TPV as well as forward EV/EBITDA multiple</li>
<li>We downgrade Klarna to a neutral from buy, for its share re-rating which led to narrowing the valuation gap with BNPL- exposed Block</li>
</ul>


At the macro-level, we believe that the “K-shaped” nature of consumer credit in the US economy may put greater pressure on delinquency, including the BNPL segment  
We reinstate the sell rating on Affirm shares, after its strong performance and stretched valuation, especially in terms of market cap to TPV as well as forward EV/EBITDA multiple
We downgrade Klarna to a neutral from buy, for its share re-rating which led to narrowing the valuation gap with BNPL- exposed Block


BNPL Companies – Locking in Gains on Klarna (KLAR US), Placing a Sell on Affirm (AFRM US)

Affirm Holdings

BNPL Companies – Locking in Gains on Klarna (KLAR US), Placing a Sell on Affirm (AFRM US)