CMC Markets PLC (LSE:CMCX) issued a “strong update after a series of more subdued ones over the past six months”, Shore Capital said.
Shore said with CMC saying operating income for the financial year (FY) just ended will be at the top end of its guidance range it will have to upgrade its FY22 numbers.
“With FY22 operating costs excluding variable remuneration at £173mln, we anticipate pre-tax profit of around £90mln, which is materially ahead of our £66mln estimate and consensus at £75mln,” the broker added.
Shore is leaving its FY23 and FY24 numbers unchanged for now as it awaits the full launch of CMC Invest, the new platform that is currently being put through its paces internally at CMC.
The broker maintains its ‘buy’ rating and the 300p price target remains unchanged, at least until the company knowns more about CMC Invest “and its potential earnings contribution, as well as the impact of further strategic investment initiatives across the business”.
CMC shares currently trade 262.5p, up 8.7% on the day.