Marex stock holds $36 target after strong revenue beat

Published 07/03/2025, 13:04
Marex stock holds $36 target after strong revenue beat

On Friday, Keefe, Bruyette & Woods maintained a positive outlook on Marex Group PLC (NASDAQ:MRX), reiterating an Outperform rating and a price target of $36.00. The firm’s analysts highlighted Marex’s recent performance, noting an adjusted earnings per share (EPS) that exceeded both their expectations and the consensus by $0.12, attributed to higher revenues and non-operating income.

Marex’s revenue outperformance, which was $0.39 above forecasts, along with a $0.04 increase in non-operating income, contributed to the EPS beat. This was partially balanced by a rise in expenses, which cut into earnings by $0.29, and a higher tax rate, which had a $0.02 negative impact. The adjusted Operating Profit, which reflects the company’s core business, surpassed expectations by $0.14. With a market capitalization of $2.64 billion and a P/E ratio of 14.4x, Marex maintains a strong gross profit margin of 67.7%. InvestingPro analysis indicates the stock is currently fairly valued, with a "GREAT" overall financial health score of 3.01 out of 4.

The analysts pointed out that the revenue and profit beat was propelled by strong results in both the Clearing and Agency & Execution segments. Marex’s Securities business, part of the Agency & Execution segment, displayed particular strength. The company has reportedly had a robust start to the year 2025, with this positive momentum carrying into the first two months.

Marex Group acknowledged its solid beginning to the year and the sustained positive trend. Keefe, Bruyette & Woods analysts indicated that they anticipate the upcoming call to provide further insights into the fourth-quarter performance of the Agency & Execution segment and to clarify if there were any one-time or unusual factors contributing to the results.

In other recent news, Citi analyst Chris Allen has raised the price target for Marex Group PLC shares to $45, up from the previous $39, while maintaining a Buy rating. This adjustment follows Marex Group’s strong performance in the fourth quarter, with the company gaining market share and experiencing growth in client balances. Citi’s positive outlook is supported by Marex Group’s leverage in the energy and commodities sectors and its regional expansion plans. The company is also poised for further growth through its impending acquisitions of Aarna Capital and Hamilton Court, expected to be finalized in the coming months. These acquisitions are anticipated to contribute approximately 10% to Marex Group’s total profit after closing. The firm projects an adjusted operating profit of $310 million for the fiscal year 2024, which could surpass the company’s guidance of $300-305 million. Citi’s forecast also considers the potential for market volatility to positively impact Marex Group’s revenue growth. The company’s strong niche positioning and focus on commercial clients further bolster the analyst’s confidence.

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