Investing.com -- Deutsche Bank began coverage of Interactive Brokers with a Buy rating and a $102 price target in a note on Monday, implying around 18% upside.

“We view IBKR as among the best-positioned brokerage platforms to benefit from the ongoing global shift toward self-directed and professional investing,” said analyst Brian Bedell.

He pointed to its low-cost offering, broad multi-asset product range, global market access and highly automated technology platform, which have supported industry-leading growth in accounts and client assets.

Bedell highlighted several competitive advantages, explaining that about 40% of revenue comes from outside the U.S., with access to 170 markets.

IBKR’s client base skews toward active and sophisticated traders who may keep trading through market downturns. Its level of automation has also scaled faster than peers, supporting operating margins in a 75% to 80% range.

He also sees Interactive Brokers as among the best-positioned online brokers to benefit from emerging growth in prediction markets.

The analyst said the company has delivered the most consistent earnings growth record in Deutsche Bank’s online broker coverage, with six straight years of double-digit growth averaging more than 25% a year.

Bedell expects that pace to continue through 2027. While he models growth slowing to the teens in 2028 and 2029, that would still represent a full decade of double-digit annual earnings growth.

He added that the pace of product innovation remains strong, with management continuing to build more advanced capabilities for clients.

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