Analyst Highlights Virtu Financial As A Bargain: 15%-20% Less Costly Than Major Banks and Insurers With 18% Investment Return
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst Craig Siegenthaler initiated coverage on Virtu Financial, Inc. (NASDAQ:VIRT) with a Buy rating and a $20 price target, suggesting an 18% return potential. The stock is considered a bargain, trading at 15%-20% less than other financials with a depressed valuation of 5-6x 2025E EBITDA. Despite challenges from the SEC and competition, VIRT's profits have stabilized, and future growth is expected from higher retail volumes, lower interest rates, and the next bull market. The analyst forecasts EPS of $2.07 for FY23 and $2.28 for FY24, both with a 5.4% dividend yield. VIRT shares were up 0.37% to $17.83.
November 28, 2023 | 5:39 pm
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POSITIVE IMPACT
Virtu Financial received a Buy rating from BofA Securities with a $20 price target, indicating an 18% upside. The stock is seen as undervalued compared to peers, with a positive outlook despite regulatory challenges.
The initiation of coverage with a Buy rating and a price target that suggests a significant upside typically has a positive impact on a stock's short-term price movement. The analyst's positive outlook, despite regulatory challenges, indicates confidence in the company's fundamentals and future performance. The stock's current undervaluation compared to peers further supports the potential for price appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100