Plus500 Ltd (LON:PLUS) shares jumped on Tuesday as market volatility caused by the coronavirus pandemic drove its revenues to record highs.
In a trading update on Tuesday, the online stockbroker said it had continued to see “a significantly increased level of customer trading activity”, both from new and existing clients.
READ: Plus500 profits soar as clients bet on coronavirus market volatility
The firm also said revenues from customer income were at record levels and its second quarter performance was “continuing to show further momentum following an exceptional first quarter”.
As a result, Plus500 said its revenue and profitability for the full year is expected to be “substantially ahead of current consensus expectations”, notwithstanding the duration of current volatility levels or the impact of regulatory changes in Australia.
In a note, analysts at Plus500’s house broker Liberum increased their price target to 1,680p from 1,500p and retained their ‘buy’ rating, saying the company’s performance reflected “the benefits of the group’s best-in-class platform”.
“[Plus500’s] scalable technology and agile marketing algorithms have enabled it to continue to achieve exceptional user growth, and undoubtedly take share”, Liberum said, adding that in light of the recent update they now expected the company’s revenues to “set a new record” in the current year.
The shares were up 3.8% at 1,285.5p in early deals.