In a report released yesterday, Craig Siegenthaler from Bank of America Securities reiterated a Buy rating on Interactive Brokers (IBKR – Research Report), with a price target of $139.00.
Craig Siegenthaler has given his Buy rating due to a combination of factors including Interactive Brokers’ (IBKR) strong organic growth potential and technological advantages. After a group meeting with IBKR’s CEO, Milan Galik, Siegenthaler maintained a positive outlook, emphasizing the company’s active search for M&A candidates while showing little interest in increasing dividends or stock repurchases. He expects an upswing in client activity and total account growth, anchored by a significant win in the large institutional broker space that could further boost the company’s already impressive account growth targets. Moreover, Siegenthaler appears confident in the firm’s strategy to address its undervaluation in the market and improve shareholder value going forward.
Siegenthaler’s Buy rating also reflects his view on IBKR’s competitive pricing, robust technology R&D, and a broad product offering that appeals globally. IBKR’s ability to introduce new capabilities efficiently and cost-effectively contributes to its high operating margin of 70%. Furthermore, compared to peers, Siegenthaler finds IBKR’s stock to be undervalued, trading at 12 times the firm’s 2025 earnings estimate versus higher multiples for competitors. He anticipates a 15% upside to the 2025 consensus EPS and notes that IBKR’s historical account growth significantly outpaces that of its competitors, reinforcing the potential for continued strong performance.
In another report released on January 17, Piper Sandler also assigned a Buy rating to the stock with a $105.00 price target.
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Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IBKR in relation to earlier this year.
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Interactive Brokers (IBKR) Company Description:
Founded in 1977, Interactive Brokers Group, Inc. is a Connecticut-based automated electronic broker, which specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds.
Read More on IBKR:
- Interactive Brokers CIO sells $2.51M in common stock
- Interactive Brokers price target lowered to $139 from $146 at BofA
- Interactive Brokers Stock (NASDAQ:IBKR) Down After Q4 Miss
- Interactive Brokers price target lowered to $106 from $109 at Barclays
- Interactive Brokers CIO sells $2.3M in common stock
