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IBKR reported an adjusted EPS of 82c, in line with the consensus estimates. Adjusted net revenue came in at $692 million, missing the consensus projection of $701.6 million.
Total customer accounts stood at 1.81 million, just above the expected 1.8 million. Customer margin loans were reported at $48.2 billion, below the analyst estimates of $49.62 billion.
The group reported $355.9 billion of customer equity, matching the analyst estimates. Customer credit balances totaled $92.5 billion, while analysts were looking for $87.25 billion.
BofA analyst Craig Siegenthaler reiterated a Buy rating and hiked the price target to $117.00 per share from $111.00 after results showed that strong organic growth momentum has continued.
“We reiterate our Buy rating as we forecast upside to consensus EPS estimates (about 20% in 2024), its PE multiple (only 15x) and we forecast about 20% revenue growth in 2023-24. IBKR also has visibility into several large introducing broker wins that it expects to announce later in 2022,” Siegenthaler said in a client note.
The analyst sees IBKR as “one of the strongest organic growth names in financial services given its wide product offering that it offers globally.”
On the other hand, Goldman Sachs analyst Will Nance is more pessimistic as he reiterated a Neutral rating and lowered the price target to $90.00 per share from $105.00.
“Management remains optimistic around account growth in the 30% range, which in combination with the outlook for earnings upside from rates, suggests an improving risk/reward. That said we remain Neutral rated as we believe we need to see retail engagement levels inflect/level out for shares to inflect higher,” Nance said in a memo to clients.
By Senad Karaahmetovic
