02:10 PM EDT, 03/12/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target $22 to $107, on a forward P/E of 17.0x our '24 EPS estimate, a discount to IBKR's five-year average multiple (19.9x) as interest rate cuts likely result in weaker performance in 2H 24 and '25. We raise our '24 EPS view by $0.20 to $6.27 and '25's by $0.20 to $6.01. IBKR is currently benefiting from markets that are pricing in an increased likelihood for "higher for longer" rates, with rate cuts not expected to begin until June and only three total 25-bp cuts expected in '24. This is down significantly from late '23, when markets thought we could see up to six 25-bp rate cuts in '24. Higher for longer rates are a benefit to IBKR due to the portfolio's extremely low duration (~30 days) and significant exposure to net interest income (64% of Q4 23 revenue). Further, IBKR should experience tailwinds from higher trading volumes as strong equity markets lead to increasing investor enthusiasm. However, we expect account growth to remain around 20%, which is the low end of management's target range.