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
Insight’s Global Infrastructure Stocks Offer Massive Upside
Industrials
Strong recovery from Covid, high lifetime FCF & IRR.s intact - companies covered by Robert Crimes offer an average upside of 73%. Europe (+98%) leads the way, followed by Asia Pacific (+51%) and South America (+43%). Highest average upside for Towers (+98%); prefers Inwit (+130%) to Vantage Towers and Cellnex. Airports (+81%); top pick is Aena (+131%). Stock selection in Toll roads is crucial - favours PINFRA & Aleatica in Mexico, offset by no upside for CCR in Brazil. In Contractors, Robert's top pick (and his No.1 ranked stock) is Ferrovial (+143%).
Edition: 119
- 17 September, 2021