Eli Abboud, an analyst from Bank of America Securities, maintained the Buy rating on BGC Group (BGC – Research Report). The associated price target remains the same with $15.00.
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Eli Abboud has given his Buy rating due to a combination of factors that highlight BGC Group’s promising outlook. The company’s interest rate futures and energy markets are expected to overcome current operational challenges, which are mainly compliance-related. Despite these hurdles, the potential for growth remains strong as BGC’s FMX Futures platform continues to onboard futures commission merchants (FCMs) and work towards resolving internal and regulatory constraints.
Additionally, the FMX Futures platform is poised to introduce new differentiated services that could enhance its market position. The partnership with LCH is a key component of its current value proposition, and there are plans to expand margining agreements and replicate successful market structures from other asset classes. The FMX consortium’s impact extends beyond futures, contributing to significant growth in the cash business, particularly in spot FX, where volumes have surged. These factors, combined with a favorable price objective, underpin Eli Abboud’s Buy rating for BGC Group.
BGC’s price has also changed slightly for the past six months – from $9.160 to $9.770, which is a 6.66% increase.