UPDATE: Stifel Nicolaus Initiates Buy, $20 PT on Interactive Brokers Group

Stifel Nicolaus initiates its coverage on Interactive Brokers Group

with a Buy rating and price target of $20, reflecting the company's market-leading growth discount. Stifel Nicolaus says, "Interactive Brokers' unique combination of online brokerage with an in-house market making business, which both leverage its fully automated, low-cost technology backbone, contributes to its industry leading operating margins. Due to this low latency trading and risk management infrastructure, IBKR is able to offer brokerage commissions at a fraction of the cost of industry peers, providing a substantial value proposition for brokerage clients and strong double-digit returns on equity in market making." IBKR closed at $15.87 a share yesterday.