Interactive Brokers shares fall on KBW analyst’s downgrade
By APMonday, March 15, 2010
Interactive Brokers shares fall on KBW downgrade
NEW YORK — Shares of Interactive Brokers Group Inc. fell Monday after an analyst downgraded the automated electronic broker, citing its exposure to market volatility.
Keefe Bruyette & Woods analyst Niamh Alexander lowered his rating on the company to “underperform” from “market perform.” The revised price target is $15, down from $17.
Interactive Brokers’ stock slipped 33 cents, or 2 percent, to close at $16.32.
The growth of high frequency trader competitors also poses a challenge for Interactive Brokers, Alexander wrote.
However, Alexander’s first-quarter earnings forecast for Interactive Brokers was raised to 24 cents per share, up from 15 cents per share and the 2010 forecast was raised to $1.03 per share, from 83 cents per share.
Alexander said Interactive Brokers has prepared for additional market volatility, and that outsized losses from fourth quarter are unlikely to carry through to the current quarter.
Alexander downgraded IntercontinentalExchange Inc. to “market perform” from “outperform,” because she said growth may slow in futures and over-the-counter energy volume in coming months. The 2010 estimate was lowered to $5.17, from $5.24.
The earnings forecast for the first quarter was raised to $1.27, up from $1.25 per share, as a result of strong volume in European futures, however.
Shares of IntercontinentalExchange fell $1.34 to finish at $108.89.
