Itaú Unibanco: Modernizing To Face The Competition

Multiplo Invest
1.38K Followers

Summary

  • Itaú is the largest bank in Latin America, and is modernizing to face the competition generated by fintechs, such as Nu Holdings.
  • It is worth remembering that banking operations in Brazil are complex, and even with competition from fintechs, Itaú has more than 100 years and a extensive know-how to operate credit.
  • The company trades at a low P/E multiple of 7.5x, with expectations of excellent results and good dividends in 2024.

Itau bank branch

Joa_Souza/iStock Unreleased via Getty Images

Investment Thesis

I recommend buying Itaú (NYSE:ITUB) shares. Over the years, players who worked in Brazilian banking operations faced major challenges, and Itaú is the main player in this market. Recently, competition with fintechs brought challenges to the

This article was written by

1.38K Followers
More than 5 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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