ITUB - Itaú Unibanco: Modernizing To Face The Competition

2024-04-18 17:01:34 ET

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.

Investment Thesis

I recommend buying Itaú ( 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 bank, which promptly initiated a major operational and cultural change in its operations, aiming to face disruptive competition....

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