CMC Markets PLC (LSE:CMCX) is still on track for profits/earnings this year of £54.4mln/14.3p, according to analysts at Peel Hunt, though they concede that market conditions are challenging.
Key metrics (client money, AUM) are proving resilient but trading and investing activity is 15-20% lower than the prior year.
CMC continues to invest in a range of strategic initiatives (there is no change to the £240mln excluding variable remuneration cost guidance), which will launch in the coming months.
The stock has continued to drift in recent months and now trades on ten times FY24 earnings, which gives little credit for any recovery in profitability though if market conditions do not improve, there is some downside risk, said the City broker's analysts.
'Buy' with a target price of 285p is their view.