BGB Securities Starts Interactive Brokers Group (IBKR) at Hold, $14 PT
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Price: $91.42 -0.26%
Rating Summary:
11 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
11 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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BGB Securities initiates coverage on Interactive Brokers Group (NASDAQ: IBKR) with a Hold. PT $14.00.
The firm comments, "Headquartered in Greenwich, CT, Interactive Brokers Group Inc. (IBG) is a holding company whose primary asset is an 11.9% stake of operations of IBG LLC (remainder owned by insiders). IBG LLC's operating activities include electronic brokerage and market making with the former accounting for an increasing portion of the bottom line, ~60% up from 50% in 2011. The lower risk, faster growth brokerage business has been the focus of the firm over the past few years as the broader market making business has come under structural pricing pressure and been mired in bad headlines (e.g., Knight Capital). And the shift in focus couldn't have come at a better time. The firm operates arguably the most advanced online brokerage in the industry, able to host a growing population of sophisticated traders. Continued growth in the brokerage contribution to the bottom line should support IBKR's valuation; however, we expect the transition will occur over an extended period. With IBKR still very much involved with market making and the operating challenges therewith, we rate shares HOLD with a price target of $14 (including consideration of $1 year-end special dividend)."
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 $14.90 yesterday.
The firm comments, "Headquartered in Greenwich, CT, Interactive Brokers Group Inc. (IBG) is a holding company whose primary asset is an 11.9% stake of operations of IBG LLC (remainder owned by insiders). IBG LLC's operating activities include electronic brokerage and market making with the former accounting for an increasing portion of the bottom line, ~60% up from 50% in 2011. The lower risk, faster growth brokerage business has been the focus of the firm over the past few years as the broader market making business has come under structural pricing pressure and been mired in bad headlines (e.g., Knight Capital). And the shift in focus couldn't have come at a better time. The firm operates arguably the most advanced online brokerage in the industry, able to host a growing population of sophisticated traders. Continued growth in the brokerage contribution to the bottom line should support IBKR's valuation; however, we expect the transition will occur over an extended period. With IBKR still very much involved with market making and the operating challenges therewith, we rate shares HOLD with a price target of $14 (including consideration of $1 year-end special dividend)."
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 $14.90 yesterday.
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