Interactive Brokers' Stock Drops After UBS Analyst Downgrades to Neutral
Shares of Interactive Brokers Group (NASDAQ: IBKR) fell as much as 6.3% on Tuesday, driven by a downgrade from UBS analyst Michael Brown who moved the stock rating to neutral (hold) from buy. Despite raising his price target to $102—up from $50—the analyst noted that the current valuation of nearly 39 times earnings is somewhat stretched for a company expected to grow earnings at low double-digit rates. Brown acknowledged Interactive Brokers' strengths, including its best-in-class brokerage platform and potential growth in account numbers, client assets, trading activity, and new product offerings such as cryptocurrency and prediction markets. However, he suggested that much of the stock's future advantage is already priced into its current valuation. Interactive Brokers has outperformed the broader market over the past year with a 47% gain compared to an 18% rise in the S&P 500 index.
Topics: IBKR stock price drop Interactive Brokers UBS analyst downgrade