CMC Markets Plc (LON:CMCX) extended its gains following the spread betting firm’s third quarter results on Thursday as Numis Securities raised its estimates and target price, albeit while maintaining a ‘sell’ rating on the stock.
In a note to clients, Numis’s analysts said: “Although the group recorded strong growth in revenues per customer during Q3, this was partially offset by the lower active client numbers and also modestly higher operating expenses (namely related to the stockbroking partnership).”
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As a result, the analysts said, they have increased adjusted earnings per share estimates for 2018, 2019, and 2020 by 7%, 8%, and 10% respectively.
They added that their target price moves up to 125p from 120p but said they remain comfortable with a ‘sell’ recommendation, which “reflects our concerns about the rapidly changing regulatory environment and its notably higher revenue volatility.”
In late morning trading, CMC shares were up 1.1% to 163.6p.