Zacks Investment Research downgraded shares of Interactive Brokers Group, Inc. (IBKR) from OUTPERFORM to NEUTRAL on July 09, 2014, with a target price of $24.50.
We are downgrading our long-term recommendation on Interactive Brokers to Neutral as the Daily Average Revenue Trades (DARTs) have been declining since past six months. Nevertheless, the company's first-quarter 2014 adjusted earnings outpaced the Zacks Consensus Estimate, driven by significant improvement across both Electronic Brokerage and Market Making segments. However, these positives were partially offset by increase in expenses. Though the Market Making segment benefited from the prevalent volatility during the quarter, we remain skeptical about its sustainability. Nevertheless, high barriers to entry, strong liquidity position, better-than-peer positioning and technological excellence keep us optimistic.
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