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On Friday, Keefe, Bruyette & Woods analyst Kyle Voigt updated the financial outlook for Marex Group PLC (NASDAQ: MRX), increasing the price target to $54.00 from the previous $45.00, while reaffirming an Outperform rating on the stock. This adjustment follows Marex’s recent earnings release, which aligned closely with the preliminary figures the company had previously disclosed.
The firm’s decision to raise the price target was influenced by Marex’s adjusted operating profit, which slightly surpassed Keefe, Bruyette & Woods’ expectations by a penny due to increased revenues. The revenue uptick added $0.10 to earnings but was partially counterbalanced by a rise in expenses, which reduced earnings by $0.08, and a drop in other income, shaving off $0.01.
Keefe, Bruyette & Woods anticipates higher Agency & Execution revenue estimates to drive Marex’s earnings per share (EPS) for the year 2025, despite no alterations to the 2026 EPS projections. The revised revenue outlook is a result of the company’s performance in the quarter and the prevailing market conditions.
The analyst report acknowledged that while Marex’s earnings had already been pre-released, offering a general overview without major shocks, the finer details revealed a less favorable revenue mix. The strength within the Agency & Execution business, which has lower margins, compensated for diminished Clearing revenues.
Keefe, Bruyette & Woods also noted that while the initial outlook for the second quarter appeared positive, near-term margin growth might be limited. The firm highlighted potential challenges such as a slight decline in net interest income (NII) due to increasing funding costs and lower overnight rates.
In other recent news, Marex Group reported several key developments that are of interest to investors. The company has priced a public offering of $500 million in senior notes due in 2028, with an interest rate of 5.829%. This offering is aimed at bolstering Marex’s liquidity and supporting its growth initiatives, with Barclays (LON:BARC), Goldman Sachs, and Jefferies serving as joint book-runners. Additionally, Marex has announced the pricing of a public offering of over 10 million ordinary shares at $35.50 each, although the company itself will not receive proceeds from this sale as the shares are being offered by selling shareholders.
Citi analysts have raised their price target for Marex Group shares from $50 to $58, maintaining a Buy rating. This upgrade follows Marex’s strong first-quarter performance, driven by robust client activity and healthy exchange volumes. Furthermore, the company is actively exploring mergers and acquisitions, indicating a strategic focus on expanding its market presence. In corporate governance news, board member Roger Nagioff has stepped down after 15 years, a move seen as part of Marex’s transition to a public company with a reduced private equity stake. The search for his replacement is currently underway as Marex continues to adapt to its new status.
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