Nubank numbers oppose Brazilian and foreign analysts

Nubank numbers oppose Brazilian and foreign analysts
Nubank numbers oppose Brazilian and foreign analysts

The difference in views on the Nubank between foreign and local analysts has drawn attention in the market and in the command of fintech, which has been uncomfortable. Foreign houses have positive expectations and recommend that their customers buy the paper from the digital bank, while Brazilian names recommend the sale of the asset and draw a more challenging scenario, with an eye on an environment of high interest rates and greater default.

Sources consider that this divergence reflects the differences between the American and Brazilian markets – the former more prone to taking long-term risks, and the latter more attentive to short-term issues in banking activity.

The founder of Nubank, David Velez, has told interlocutors that local analysts and investors have not yet understood fintech, while foreigners, even through contact with similar companies, show greater understanding. Internally, he has asked the board to better explain Nubank’s history to the market, according to the Estadão/Broadcast.

Among Brazilians, Bradesco BBI, Itaú BBA and Santander recommend selling the paper, while the BTG has a neutral recommendation. Among foreigners, Goldman Sachs, citi and Morgan Stanley have the buy recommendation – the exception is the JPMorganwith a sell recommendation.

Vélez has said that Brazilian analysts did not understand fintech Photograph: Brendan McDermid/Reuters

To better explain its business, Nubank argues that it is at the beginning of the journey, with about 10 years of existence, while the large banks, such as Itau and Bradesco, have decades of history. The foreign investor sees chances that the neobank will gain more scale, while in the banks, with trillions in assets, this chance is smaller.

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Nubank explains that its client generates a good average revenue per month, one of the most evaluated indicators in digital banks, but little remembered in traditional banks. At fintech, that number reached $7.80 at the end of June.

In large banks, which offer more products and services, it is US$ 40. On average, Nubank may not reach this amount, but foreigners see a greater chance of the difference decreasing, while the local focuses on the influence of conjunctural factors on the high, betting that, in a more adverse scenario in the short term, fintech will have to keep putting its foot on the credit brake, growing less.

The article is in Portuguese

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