CMC Markets PLC (LSE:CMCX)’s valuation is undemanding according to broker RBC Capital Markets which has reiterated its outperform, speculative risk rating on the company.
The broker has made minor tweaks to forecasts following CMC's pre-close statement but has left its price target unchanged at 350p.
“We continue to believe the legacy of profitability from the pandemic is underappreciated by the market, whilst initiatives to grow and diversify earnings are a further source of re-rating potential, if successful” the broker said in a note.
RBC said the current valuation of 9.7x current year estimated PE is undemanding for a high margin, capital generative, debt free business.
CMC is due to report first half results next Wednesday, 16 November.
Shares in CMC rose 2.2% to 253.50p.