CMC Markets PLC (LSE:CMCX) is on track towards diversifying earnings, according to broker Peel Hunt, which maintained its buy recommendation and target price of 462p.
While a tougher macroeconomic environment meant that the firm's net operating income (NOI) remained flat year on year, trading clients and client assets remain robust, it said.
Analysts at Peel Hunt said the company is progressing well in new business growth, that its expansion initiatives are on track, and that they are confident it will hit its growth NOI of 30% over the next three years.
Peel Hunt added that CMC Markets' “model continues to have sway with the markets”, only further highlighting the importance of investment into non-leveraged solutions, and that its UK investment platform should help with this.
The broker said the current valuation remains "significantly below" the true value of the business.