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Investing.com - BofA Securities upgraded Virtu Financial (NASDAQ:VIRT) from Neutral to Buy on Tuesday, while lowering its price target to $45.00 from $52.00. The company, which currently trades at a P/E ratio of 7.67x, has demonstrated strong financial performance with a 42.88% revenue growth in the last twelve months.
The firm cited recent underperformance as an opportunity, noting that Virtu’s valuation has declined by 24% over the past 90 days to 8 times consensus next-twelve-months earnings per share. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
BofA Securities pointed out that this valuation now sits one standard deviation below Virtu’s five-year average, creating a buying opportunity despite some market share challenges. The company maintains a solid 2.89% dividend yield and has consistently paid dividends for 11 consecutive years.
The investment bank expects Virtu to benefit from low double-digit percentage growth in its core retail brokerage end market, which should support positive long-term earnings growth.
Under new leadership, BofA Securities anticipates Virtu will pursue more aggressive product expansion into options, cryptocurrency, and credit markets.
In other recent news, Virtu Financial Inc. reported a substantial increase in its second-quarter earnings for 2025. The company achieved an 83% year-over-year rise in adjusted earnings per share, reaching $1.53. This growth was attributed to robust performances across its trading platforms. The impressive earnings report highlighted Virtu Financial’s ability to capitalize on market opportunities. While the stock price movement was notable, it is important to focus on the earnings results themselves. These developments reflect Virtu Financial’s strategic execution and operational efficiency. The company’s trading income also contributed significantly to the positive financial outcome.
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