Jefferies downgrades CMC Markets to ‘hold’

by | Mar 30, 2023

Jefferies has downgraded CMC Markets, after the online trading platform warned of a more challenging environment.
The broker cut its rating to ‘hold’ from ‘buy’ and reduced its price target to 190p from 275p.

In a note published on Thursday, it said: “Market volatility would normally be expected to favour CFD trading volumes, and CMC Markets’ closest peers have recently said that they expect to meet consensus forecasts for their next financial years.

“With CMC Invest UK still too young to make a meaningful contribution and stockbroking income coming down from pandemic highs, we cut our forecasts in line with the profit warning.”

CMC said on Monday that net operating income for the 2023 full year would likely be more or less flat, with lower equity volumes and a higher proportion of lower margin institutional trading activity.

Shares in CMC, which fell sharply following the profit warning, were largely flat as at 0930 BST, at 176.21p.

Related articles

Ryanair passenger numbers jump 9% in December

Ryanair passenger numbers jump 9% in December

(Sharecast News) - Budget airline Ryanair reported a 9% jump in December passenger numbers on Wednesday. Traffic rose to 12.54 million from 11.52m in the same month a year earlier, while the load factor - which gauges how full the planes are - ticked down to 91% from...

Wizz Are passenger numbers soar in December

Wizz Are passenger numbers soar in December

(Sharecast News) - Hungary-based budget airline Wizz Air reported a strong rise in December passenger numbers as demand continued to rebound from the Covid pandemic. The company on Wednesday said it carried 4,964,857 passengers, an 18.8% increase year on year. For the...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!