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 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

Thematic (Sector/Industry)

<ul>
<li>Exchanges, especially in developed markets, continue to seek revenue streams outside of the traditional trading and transaction-based fees which has led to a mini-boom in exchange-driven M&amp;A targeting diversification</li>
<li>We use data and IT revenues as a proxy for “stickier” potentially recurring revenues in four DM and three EM exchanges, concluding that DM exchanges are under more diversification pressure</li>
<li>We identify three buy opportunities in exchanges; we like Hong Kong Exchange, Deutsche Borse and we add Nasdaq, whilst we are negative on Coinbase which remains the exchange to avoid</li>
</ul>


Exchanges, especially in developed markets, continue to seek revenue streams outside of the traditional trading and transaction-based fees which has led to a mini-boom in exchange-driven M&amp;A targeting diversification
We use data and IT revenues as a proxy for “stickier” potentially recurring revenues in four DM and three EM exchanges, concluding that DM exchanges are under more diversification pressure
We identify three buy opportunities in exchanges; we like Hong Kong Exchange, Deutsche Borse and we add Nasdaq, whilst we are negative on Coinbase which remains the exchange to avoid


Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

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.

Intercontinental Exchange / Equity Bottom-Up

<ul><li>Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings.</li><li>Their interest rate markets also saw volume rise in the first quarter due to increased hedging activity from central bank activities and banking concerns.</li><li>Intercontinental Exchange also had significant volumes in its SONIA contract, up 12% from the previous year.</li></ul>

Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings.Their interest rate markets also saw volume rise in the first quarter due to increased hedging activity from central bank activities and banking concerns.Intercontinental Exchange also had significant volumes in its SONIA contract, up 12% from the previous year.

Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency

Credit

<ul><li>Intercontinental Exchange (ICE) is one of the largest providers of provider of market infrastructure, data services and technology solutions in the world.</li><li>In ICE’s equity derivatives complex, the ADV in its MSCI complex has been rising as the volatility levels in the market have grown.</li><li>Recurring revenues of the company have been increasing, driven by robust demand for the company’s energy exchange data rendering strong future foreseeability.</li></ul>

Intercontinental Exchange (ICE) is one of the largest providers of provider of market infrastructure, data services and technology solutions in the world.In ICE’s equity derivatives complex, the ADV in its MSCI complex has been rising as the volatility levels in the market have grown.Recurring revenues of the company have been increasing, driven by robust demand for the company’s energy exchange data rendering strong future foreseeability.

Intercontinental Exchange (ICE): Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on the Intercontinental Exchange (ICE), one of the largest providers of provider of market infrastructure, data services and technology solutions in the world.</li><li>In ICE’s equity derivatives complex, the ADV in its MSCI complex was up as the volatility levels continued rising.</li><li>Recurring revenues increased, driven by robust demand for the company’s energy exchange data as well as the continued benefit from its record 2021 listings performance.</li></ul>

This is our first report on the Intercontinental Exchange (ICE), one of the largest providers of provider of market infrastructure, data services and technology solutions in the world.In ICE’s equity derivatives complex, the ADV in its MSCI complex was up as the volatility levels continued rising.Recurring revenues increased, driven by robust demand for the company’s energy exchange data as well as the continued benefit from its record 2021 listings performance.

Intercontinental Exchange (ICE): Initiation of Coverage – APAC Expansion & Other Drivers

United States

The Bank of New York Mellon Corporation (BNY Mellon) is a global financial services company. The Company provides asset and wealth management, asset servicing, issuer, clearing, and treasury services for institutions, corporations, and high net worth individuals.

BlackRock, Inc. provides diversified investment management services to institutional clients and to retail investors through various investment vehicles. The Company offers the BlackRock Funds and Blackrock Liquidity Funds, and also provides risk management services to fixed income institutional investors.

Ameriprise Financial, Inc. is a financial planning and services firm.  The Company provides financial planning, products and services that are designed to be utilized as solutions for its clients' cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs.

CME Group Inc. operates a derivatives exchange that trades futures contracts and options on futures, interest rates, stock indexes, foreign exchange and commodities.  The Exchange brings together buyers and sellers of derivatives products on its trading floors, electronic trading platform, and through privately negotiated transactions that it clears.

The Charles Schwab Corporation provides a variety of financial services to individual investors, independent investment managers, retirement plans, and institutions.  The Company provides its clients with securities brokerage, banking, and related financial services through offices in the United States, Puerto Rico, and the United Kingdom.

Moody's Corporation is a credit rating, research, and risk analysis firm.  The Company provides credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and securities pricing software and valuation models.

KKR & Co. Inc. operates as an investment firm. The Company manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds. KKR & Co serves clients worldwide.

State Street Corporation services institutional investors and manages financial assets worldwide.  The Company's products and services include custody, accounting, administration, daily pricing, international exchange services, cash management, financial asset management, securities lending, and investment advisory services.

Tradeweb Markets Inc. builds and operates electronic marketplaces for rates, credit, equities/ETFs and money markets. The company serves institutional, wholesale and retail clients in 62 countries including large global asset managers, insurance companies, central banks, financial advisory firms, proprietary trading firms, hedge funds, banks and dealers.

Raymond James Financial, Inc. provides financial services to individuals, corporations, and municipalities through its subsidiary investment firms. The Company operates throughout the United States, Canada and overseas.

Macquarie Group Ltd. offers banking, financial advisory, investment and funds management services.  The Company offers financial advice, cash management, wealth management and private banking, life insurance, securities brokerage, corporate debt financing, real estate funds management, real estate development financing, investment funds management, and foreign exchange services.

London Stock Exchange Group plc is the United Kingdom's primary stock exchange. The LSE provides markets that facilitate the raising of capital and the trading of corporate securities, access to a trading environment, as well as real-time pricing and reference information services worldwide.  Market coverage includes equities, derivatives and fixed-interest securities.

London Stock Exchange Group plc is the United Kingdom's primary stock exchange. The LSE provides markets that facilitate the raising of capital and the trading of corporate securities, access to a trading environment, as well as real-time pricing and reference information services worldwide. Market coverage includes equities, derivatives and fixed-interest securities.

London Stock Exchange Group PL (LNSTY US)

Banco BTG Pactual S/A. provides financial services. The Company offers asset and wealth management, investment banking, trading, corporate lending, sales, and other related solutions. Banco BTG Pactual serves customers in Brazil.

CITIC Securities Co., Ltd. provides securities brokerage, trading, underwriting, investment banking, asset management, and investment consulting services.

Hong Kong Exchanges & Clearing Limited owns and operates the stock exchange, futures exchange, and their related clearing houses in Hong Kong.  The Company provides the trading platforms for a range of cash and derivatives products and the facilities for processing trades.

Deutsche Boerse AG provides a variety of stock exchange introduction, trading, and operational services to institutions and private investors. The Company offers electronic trading systems for buying and selling of securities on stock exchanges in Europe.  Deutsche Boerse offers indices such as DAX, MDAX, SDAX, and XTF, as well as trading in options and futures.

3i Group plc is an international investor focused on private equity, infrastructure and debt management. The Company's investments are located across multiple continents through local investment teams in Europe, Asia and North America.

CSC Financial Co., Ltd. provides investment management services. The Company offers investment banking, wealth management, and trading and institutional client services. CSC Financial conducts its business in Hong Kong.

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.

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Intercontinental Exchange (ICE US)

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

Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

We select, as our buys, Nasdaq for its focused diversification strategy, Deutsche Boerse for its relative value versus peers and HKEX for its GARP...

Victor Galliano

Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency

Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings. Their interest rate markets also saw...

Baptista Research

Intercontinental Exchange (ICE): Detailed Credit Analysis & Financial Strength Evaluation Report

Intercontinental Exchange (ICE) is one of the largest providers of provider of market infrastructure, data services and technology solutions in...

Baptista Research

Intercontinental Exchange (ICE): Initiation of Coverage – APAC Expansion & Other Drivers

This is our first report on the Intercontinental Exchange (ICE), one of the largest providers of provider of market infrastructure, data services...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

We select, as our buys, Nasdaq for its focused diversification strategy, Deutsche Boerse for its relative value versus peers and HKEX for its GARP...

Victor Galliano

Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency

Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings. Their interest rate markets also saw...

Baptista Research

Intercontinental Exchange (ICE): Detailed Credit Analysis & Financial Strength Evaluation Report

Intercontinental Exchange (ICE) is one of the largest providers of provider of market infrastructure, data services and technology solutions in...

Baptista Research

Intercontinental Exchange (ICE): Initiation of Coverage – APAC Expansion & Other Drivers

This is our first report on the Intercontinental Exchange (ICE), one of the largest providers of provider of market infrastructure, data services...

Baptista Research

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