{"id":28041,"date":"2023-10-19T15:35:12","date_gmt":"2023-10-19T15:35:12","guid":{"rendered":"https:\/\/microloannexus.com\/news\/bank-of-america-says-this-brokerage-stock-is-cheap-and-has-50-upside\/"},"modified":"2023-10-19T15:35:13","modified_gmt":"2023-10-19T15:35:13","slug":"bank-of-america-says-this-brokerage-stock-is-cheap-and-has-50-upside","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=28041","title":{"rendered":"Bank of America says this brokerage stock is cheap and has 50% upside"},"content":{"rendered":"<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">Bank of America thinks it&#8217;s the right time for investors to scoop up shares of Interactive Brokers after its earnings topped analyst estimates earlier this week. The bank has a buy rating on the global electronic brokerage firm, and its $128 price target suggests shares could jump roughly 54% from its latest closing price. &#8220;IBKR has the strongest organic growth prospects in our coverage through its broad offering for active traders, retail, brokers, financial advisors, hedge funds and prop traders globally,&#8221; analyst Craig Siegenthaler wrote in a Wednesday note, referring to proprietary trading . Interactive&#8217;s &#8220;key competitive advantage is its technology R &amp; D effort which supports its first-mover advantages with new capabilities, lower product price points and a 70%+ operating margin.&#8221; Siegenthaler said Interactive is &#8220;cheap,&#8221; adding he&#8217;s particularly bullish on the company&#8217;s potential upside after it exceeded Wall Street&#8217;s earnings expectations earlier this week. IBKR YTD mountain Interactive Brokers in 2023. Interactive Brokers posted third-quarter adjusted earnings of $1.55 per share on adjusted revenue of $1.14 billion postmarket Tuesday, while analysts polled by LSEG had called for earnings of $1.51 per share and $1.11 billion in revenue. &#8220;We think that IBKR should trade closer to the valuations of the e-trading platforms &#8230; given its secular growth qualities and diversified profit stream (diversification of net interest revenue versus commissions),&#8221; Siegenthaler said. The analyst listed three reasons he particularly favors Interactive Brokers: The stock as &#8220;cheap,&#8221; trading at 11 times the bank&#8217;s 2025 earnings-per-share estimate. The stock has 24% upside potential to its 2025 consensus EPS. Interactive will &#8220;continue to generate strong organic growth,&#8221; and grew 34% on average from 2017 to 2022. Siegenthaler added that after Interactive Brokers&#8217; chairman Thomas Peterffy lowered the company&#8217;s intermediate-term account growth target to 20% from 30% during its earnings call this week, he thinks expectations on the company&#8217;s account inflows are back to a level that it can &#8220;beat in most quarters.&#8221; To be sure, the analyst noted that the stock has been a difficult play for long-term investors to own, given the company&#8217;s large-cap market cap coupled with lack of stock liquidity, visibility into succession plan and capital retention, among other factors. &#8220;Alternatively, given the mostly hedge fund interest in IBKR, we think that a bull market or an improvement in these factors could unlock significant valuation upside potential for IBKR stock,&#8221; Siegenthaler said.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.cnbc.com\/2023\/10\/19\/-bank-of-america-says-this-brokerage-stock-is-cheap-and-has-50percent-upside.html\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America thinks it&#8217;s the right time for investors to scoop up shares of Interactive Brokers after its earnings topped analyst estimates earlier this week. The bank has a buy rating on the global electronic brokerage firm, and its $128 price target suggests shares could jump roughly 54% from its latest closing price. &#8220;IBKR<\/p>\n","protected":false},"author":1,"featured_media":28042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-28041","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of America says this brokerage stock is cheap and has 50% upside | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"Bank of America thinks it&#039;s the right time for investors to scoop up shares of Interactive Brokers after its earnings topped analyst estimates earlier\" \/>\n<meta name=\"robots\" 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