Deutsche Bank initiated coverage of Interactive Brokers (NASDAQ: IBKR) on Monday with a "Buy" rating and a price target of $102.00. The new target suggests a potential upside of approximately 16-18% from the stock's previous closing price.
Analyst Brian Bedell cited Interactive Brokers as one of the best-positioned brokerage platforms. He noted its ability to capitalize on the global trend toward self-directed investing. Bedell highlighted the company's low-cost structure and extensive multi-asset product offerings. Interactive Brokers also provides global market access to 170 markets and features a highly automated technology platform.
Deutsche Bank also highlighted the company's consistent earnings growth. Interactive Brokers recorded six consecutive years of double-digit increases. These increases averaged over 25% annually. The firm's analysis pointed to IBKR's highly scalable business model. This model supports industry-leading operating margins. Deutsche Bank also identified IBKR's skew towards active, sophisticated traders as a durable competitive advantage.