Plus500 Ltd (LON:PLUS) has had its target price hiked to 1,950p from 1,680p by analysts at Liberum following its bumper set of half year results.
In a note on Tuesday, the broker also retained its ‘buy’ rating on the spread-betting firm, saying its success was “due to more than just favourable market conditions”, highlighting its “best-in-class platform, which continues to deliver despite lower leverage limits”.
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“[Plus500’s] scalable technology and agile marketing algorithms has enabled it to win significant market share, drive continued improvement in financial returns, and be one of the first companies in Israel to receive the status of a Preferred Technological Enterprise”, Liberum said, adding that the firm’s new status allowed it access to “significant tax credits”, resulting in a 21% increase to their medium term earnings per share (EPS) forecasts.
The broker also said the company’s investments in its mobile and tablet offering were also paying off and had supported its market share gains.
“Given the performance of the platform during the first six months of the year, it is clear to us that Plus500 is the leading operator in the retail [contracts for difference] space. As a result, we believe that the current discount at which it trades to its peers will unwind”, the analysts said.
Shares in Plus500 were 2.6% higher at 1,285.5p in mid-morning trading.