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

Brazil Banks – Stick with Bradesco, Adding Small-Cap Banrisul to the Buy List

Big-Cap Brazilian Commercial Banks; Bradesco (BBDC4 BZ), the Earnings Recovery Play

Inter (INTR US) – Closing Out Our Long Position on Inter

EM Neobanks – Closing Out Our Short on Nubank (NU US), Stick with the Long on Inter (INTR US)

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>Itausa holdco trades at a 25% NAV discount, which is more than one standard deviation from the mean; yet we choose to downgrade Itausa to a neutral from a buy</li>
<li>Itaú Unibanco shares, the key contributor to Itausa’s NAV, are trading at a near three-year high PBV ratio; we believe that the bank’s current valuation largely discounts its return potential</li>
<li>We believe that, in turn, the bank’s current premium valuation limits the upside potential for Itausa’s shares; furthermore, the performance of the two shares has decoupled slightly in recent months</li>
</ul>


Itausa holdco trades at a 25% NAV discount, which is more than one standard deviation from the mean; yet we choose to downgrade Itausa to a neutral from a buy
Itaú Unibanco shares, the key contributor to Itausa’s NAV, are trading at a near three-year high PBV ratio; we believe that the bank’s current valuation largely discounts its return potential
We believe that, in turn, the bank’s current premium valuation limits the upside potential for Itausa’s shares; furthermore, the performance of the two shares has decoupled slightly in recent months


Itausa ( ITSA4 BZ): Itaú Unibanco Premium Rating Limits Holding Company Upside