Interactive Brokers Has An 'Insulated And Attractive Growth Profile,' Says Bullish Analyst

Online trading platform Interactive Brokers Group, Inc. IBKR recently launched educational resources for all traders independent of their trading activity.

The company’s business model will support growth despite softening retail volumes in the industry, according to UBS.

The Interactive Brokers Analyst: Brennan Hawken initiated coverage of Interactive Brokers with a Buy rating and price target of $113.

The Interactive Brokers Thesis: The company’s automated trading platform has grown total client assets fastest than peers, with higher penetration among global clients and introducing offerings that have multi-channel appeal, Hawken said in the initiation note.

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Interactive Brokers has achieved industry-leading profitability and has continued to onboard institutional accounts, such as hedge funds and proprietary traders, which typically maintain their activity levels even amid challenging market conditions, the analyst stated.

“As a result of IBKR's positioning in key growth markets and the relative resilience of their active trader mix, we are forecasting account and adj. earnings CAGRs of 22% and 23%, respectively, through FY2025,” he added.

IBKR Price Action: Shares of Interactive Brokers had risen by 2.03% to $87.39 at the time of publication Tuesday.

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