BofA cuts Interactive Brokers target to $243, keeps buy rating

On Wednesday, BofA Securities updated its outlook on (NASDAQ:IBKR), the stock of Interactive Brokers Group, adjusting the price target to $243 from the previous $265 while retaining a Buy rating on the shares. The revision reflects concerns over the potential impact of ongoing tariff disputes on the international demand for US assets, which could negatively affect brokers that facilitate access to the US market. According to InvestingPro data, seven analysts have recently revised their earnings expectations upward for the upcoming period, with analyst targets ranging from $144 to $265.

Despite these concerns, Interactive Brokers has reportedly continued to experience robust demand from international clients for US assets into April. According to BofA Securities analyst Craig Siegenthaler, the company’s comprehensive global offering, which includes access to 160 global markets across various asset classes, allows clients to easily shift their focus between domestic and international assets as needed. The company’s strong market position is reflected in its impressive 62.5% return over the past year and 18.7% revenue growth. InvestingPro analysis indicates the company maintains a GREAT financial health score, suggesting robust operational performance.

Siegenthaler’s commentary highlights Interactive Brokers’ resilience amid market uncertainties, stating, "Investors seem concerned that the tariff dispute could undermine the strong international demand for US assets, which would adversely impact US/global brokers that provide access to the US market." He further notes the company’s ability to adapt, adding, "That said, Interactive Brokers has seen continued demand for US assets into April from international clients, and given its global offering (160 global markets, across asset classes), clients can seamlessly pivot between domestic and global assets."

Interactive Brokers Group is known for providing electronic brokerage services to both professional traders and sophisticated investors. The company’s platform offers trading in stocks, options, futures, forex, bonds, and funds on over 135 markets in 33 countries and territories.

The adjustment of the price target by BofA Securities reflects a careful consideration of the current economic landscape, particularly the tariff disputes, while also acknowledging the strengths and strategic positioning of Interactive Brokers in the global financial services market.

In other recent news, Interactive Brokers Group Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.88, slightly above the forecast of $1.87, and reported revenues of $1.43 billion, exceeding the anticipated $1.38 billion. This strong performance was highlighted by a 36% increase in commissions, reaching over $500 million, and the addition of 279,000 new accounts, marking a record quarter for the company. Interactive Brokers also announced plans for a 4-for-1 stock split and an increase in its quarterly dividend from $1 to $1.28. Despite these positive developments, the stock experienced a decline in aftermarket trading. The company continues to focus on automating brokerage operations and expanding its cryptocurrency offerings, with future EPS forecasts ranging from $1.86 to $1.90 for upcoming quarters. Additionally, Interactive Brokers has not stopped exploring potential acquisitions, although no new deals have been finalized.

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