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

XP Inc (NasdaqGS:XP): Secular Growth Opportunity, but XP Is Not Immune to Competition

XP Inc (NasdaqGS:XP): Secondary Offer and Valuation Are Catalysts for Share Price Correction

Itausa (ITSA4 BZ): Discounted Access to Itaú Unibanco, and Potentially to the XP Holding Spin-Off

XP Inc (XP US): This Brazil Fintech's Growth Potential Warrants the Premium IPO Valuation

XP Inc IPO: Strong Business but Overpriced

Banco Inter (BIDI11 BZ) Investor Day: Capitalised and Scaled for Growth

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>AUC growth for 4Q19 was ahead of our expectations at 17% QoQ and 103% YoY, despite slower  than expected growth in active clients</li>
<li>We believe that this is a positive early signal ahead of the full results release is on the 17th March 2020</li>
<li>Although XP is trading on punchy valuations, we think that this is justified by the medium term growth story especially in terms of EV/EBITDA</li>
<li>Risks include higher than expected customer acquisition costs impacting EBITDA adversely, as well as increased competition from traditional banks as well as other asset management specialists</li>
</ul>


AUC growth for 4Q19 was ahead of our expectations at 17% QoQ and 103% YoY, despite slower  than expected growth in active clients
We believe that this is a positive early signal ahead of the full results release is on the 17th March 2020
Although XP is trading on punchy valuations, we think that this is justified by the medium term growth story especially in terms of EV/EBITDA
Risks include higher than expected customer acquisition costs impacting EBITDA adversely, as well as increased competition from traditional banks as well as other asset management specialists


XP Inc (NasdaqGS:XP) - 4Q19 KPIs; AUC Growth Ahead of Our Expectations