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 (XP US) – Less Demanding Valuations, but the Overhang Still Weighs

Itausa (ITSA4 BZ) – Historically Wide, and Potentially Understated, NAV Discount

Itausa (ITSA4 BZ) – Historically Big NAV Discount Buying Opportunity

XP (XP US): The IFA “arms Race” Is Turning Nasty

XP (XP US) Follow-On Issue Highlights Over-Hang, Potential for More Share Sales Post Itaú Spin-Off

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xp-inc" target="_blank" data-smartkarma-citation="entities:28619:1" rel="noopener">XP</a>’s offer for the smaller Modal values it at 10% of assets under custody (AuC) which is just a slight discount to XP’s market value of 11% of AuC</li>
<li>The acquisition should add 15% to XP’s active client base, yet it should add a mere 4% to AuC; relative to XP, Modal has 25% of average assets per client</li>
<li>We believe that the impact of this bolt-on M&amp;A is marginal at best, given the intense competition from larger wealth managers, such as the wealth arm of BTG Pactual</li>
</ul>



XP’s offer for the smaller Modal values it at 10% of assets under custody (AuC) which is just a slight discount to XP’s market value of 11% of AuC
The acquisition should add 15% to XP’s active client base, yet it should add a mere 4% to AuC; relative to XP, Modal has 25% of average assets per client
We believe that the impact of this bolt-on M&amp;A is marginal at best, given the intense competition from larger wealth managers, such as the wealth arm of BTG Pactual


XP (XP US) – Modal Acquisition Edges the Needle Higher on AuC, but It Is No Bargain