Wells Fargo Downgrades Interactive Brokers Group (IBKR) to Market Perform; Fairly Valued as Outlook for Volume Growth Limited

Wells Fargo downgraded Interactive Brokers Group (NASDAQ: IBKR) from Outperform to Market Perform with a price target range cut to $14-$16 (from $17-$18).

Analyst, Christopher Harris, said, "Our lower rating and lower EPS outlook reflect a more cautious view on volumes, which we expect will negatively affect both the market making and brokerage businesses. We are reducing our 2012/2013 EPS estimates to $0.92/ $1.17 from $1.10/ $1.42."

"While not part of the thesis, we also think IBKR is needlessly exposed to the Euro through its GLOBAL equity basket, which could significantly impair future earnings power assuming further declines in that currency."

For an analyst ratings summary and ratings history on Interactive Brokers Group click here. For more ratings news on Interactive Brokers Group click here.

Shares of Interactive Brokers Group closed at $14.02 yesterday.

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