Zacks Investment Research upgraded shares of Interactive Brokers Group, Inc. (IBKR) from UNDERPERFORM to NEUTRAL on May 31, 2013, with a target price of $16.00.
We are upgrading our recommendation on Interactive Brokers to Neutral due to its robust capital position and liquid balance sheet. Further, the company's continuous capital deployment activities are expected to boost shareholders' confidence. However, the company's first-quarter earnings missed the Zacks Consensus Estimate primarily due to deterioration in top line, partially offset by lower operating expenses. Moreover, the performance of the Market Making segment was disappointing. Further, the Market Making segment's ability to consistently generate sufficient returns to fund dividend payment remains a matter of concern. However, high barriers to entry strengthen the company's position. Moreover, its better-than-peer positioning and technological excellence make us optimistic.
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