BGC Group, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Eli Abboud from Bank of America Securities maintained a Buy rating on the stock and has a $15.00 price target.
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Eli Abboud has given his Buy rating due to a combination of factors that highlight the promising trajectory of BGC Group’s FMX Futures subsidiary. The FMX platform is making significant strides in the interest rate futures market, traditionally dominated by CME Group. Despite currently holding a modest market share, FMX’s open interest has seen substantial growth, and its bid-ask spreads have tightened, indicating increased competitiveness.
FMX’s strategy of utilizing half-tick increments allows for tighter spreads compared to CME, which is reflected in the increasing frequency of FMX’s quotes matching or surpassing those of CME. This competitive edge, coupled with the potential for further market penetration and the anticipated onboarding of asset managers, positions FMX for future growth. Additionally, the upcoming initiatives such as buyside penetration and the launch of new trading products are expected to drive momentum in BGC’s interest rate futures and energy sectors, supporting the Buy rating.
Abboud covers the Financial sector, focusing on stocks such as BGC Group, Marketaxess Holdings, and Carlyle Group. According to TipRanks, Abboud has an average return of 8.5% and a 66.67% success rate on recommended stocks.
In another report released on August 30, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $11.00 price target.