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Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Itausa SA (ITSA4)

Financials

Galliano's Financials Research

Itausa SA has acquired a 10.3% stake in toll road company CCR in a diversification move away from its core financial holdings which still account for 90%+. Itausa’s stated NAV discount is over 26%, and Victor Galliano believes this discount is under-estimated. Itausa’s indirect XP stake adds to the NAV, implying a discount of close to 28%. Reinvesting the proceeds of disposals in CCR makes good diversification sense; aside from the historically high NAV discount, Itausa has an attractive LTM dividend yield of over 5%.

Edition: 145

- 30 September, 2022