First-half numbers from CMC Markets PLC (LSE:CMCX) were better than expected, according to analysts, with some potential upside seen in the second half of the year.
Broker Shore Capital said it was a positive trading update, with the performance in the core CFD business “better than we expected”, while noting that cost guidance was maintained.
“We expect to have to upgrade current-year EPS to end-March 2023 by a high single-digit percentage driven by core business revenue,” said analyst Vivek Raja.
He added that the £30mln share buyback programme is likely to complete more quickly than originally anticipated.
House broker Peel Hunt said it is leaving its estimates unchanged but “the balance of risk has shifted towards the upside”.
Peel Hunt analyst Stuart Duncan noted that the company remains confident about hitting its medium-term growth target of growing net operating income 30% over the next three years, with the pre-tax profit (PBT) margin increasing from next year.
He forecasts full-year pre-tax profits of £65.4mln and earnings per share of 17.6p, which compares to consensus of £66.6mln and 18.4p.
Peel Hunt’s share price target remained at 462p with a ‘buy’ rating, while Shore Capital sees fair value at 260p and kept its ‘hold’ recommendation.