UPDATE: BGB Securities Initiates Interactive Brokers Group at Hold; Growth Fully Valued
BGB Securities initiated coverage on Interactive Brokers Group (NASDAQ: IBKR) with a Hold rating and a $14 price target.
BGB Securities noted, "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."
Interactive Brokers Group closed at $14.90 on Wednesday.
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