Citi Upgrades Virtu Financial (VIRT) to Buy, 'Well-Positioned for Any Tick Up in Volatility'

Citi analyst Chris Allen upgraded Virtu Financial (NASDAQ: VIRT) from Neutral to Buy with a price target of $20.00.

The analyst comments "Post the SEC filing suit against VIRT on 9/12, the stock finished down 8.5%, shaving $200M+ in market cap from the stock. As we discussed in our note yesterday, we believe the stock reaction is overdone. While the SEC case will remain an overhang for some time, given prior cases—the most egregious of which was ITG’s which settled for $20M—we would expect any settlement/fine to be financially manageable. Based on our discussions with the company, there has been no client reaction from the SEC case, and we believe the business will not be impacted by the headlines. As we have seen numerous times over the years, regulatory headlines present opportunities with VIRT’s stock and we see the current weakness as an attractive entry point."

For an analyst ratings summary and ratings history on Virtu Financial click here. For more ratings news on Virtu Financial click here.

Shares of Virtu Financial closed at $16.89 yesterday.

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