Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Interactive Brokers Analyst Finds Stock Appealing Even After Recent Rally

Published 09/01/2024, 15:49
Updated 09/01/2024, 17:10
© Reuters.  Interactive Brokers Analyst Finds Stock Appealing Even After Recent Rally

Benzinga - by Priya Nigam, Benzinga Staff Writer.

Shares of Interactive Brokers Group, Inc (NASDAQ: IBKR) have rallied over the past several weeks.

However, investors seem to be overestimating the company’s rate sensitivity, which has led the stock to underperform rate-sensitive peers over the past six months, ahead of the Federal Reserve’s rate cuts, according to Goldman Sachs.

The Interactive Brokers Analyst: James Yaro upgraded the rating for Interactive Brokers Group from Neutral to Buy, while raising the price target from $88 to $102.

The Interactive Brokers Group Thesis: The market is already discounting rate cuts, predicting a decline of 3%-16% in earnings from 2023 to 2025, Yaro said in the upgrade note.

Check out other analyst stock ratings.

“However, we see substantial upside to these market-implied earnings,” the analyst wrote. “The company should be able to keep EPS flat, even in a deep downside earnings scenario with 10 rate cuts from 2023-25E (2 more than the market forward curve), as the company offsets rate cuts with strong balance sheet growth and mix shift, and commissions growth,” he added.

“Put another way, we see current valuation as offering an attractive entry point, with risk skewed to the upside,” Yaro further stated.

IBKR Price Action: Shares of Interactive Brokers were down 0.4% to $87.24 at the time of publication Tuesday.

Now Read: Bank Earnings Preview: Cautious Outlook As JPMorgan, Citigroup, BofA And Wells Fargo Report On Friday

Photo: Shutterstock

Latest Ratings for IBKR

Jan 2022Keefe, Bruyette & WoodsUpgradesMarket PerformOutperform
Jan 2022Goldman SachsMaintainsNeutral
Dec 2021B of A SecuritiesInitiates Coverage OnBuy
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.