Pre-market trading saw shares of Interactive Brokers fall 1.5% after the company’s retail investment report.

IBKR reported an adjusted earnings per share of 82c. This is in line with consensus estimates. The consensus forecast of $701.6million was not met by the adjusted net revenue, which came out at $692million.

Just above the expected 1.81 million customer accounts, total customer accounts were reported at 1.81 million. Analyst estimates were lower at $49.62 billion for customer margin loans, which was $48.2 Billion.

According to analyst expectations, the company reported customer equity totaling $355.9 Billion. Customers’ credit balances totaled 92.5 billion while analysts expected $87.25 trillion.

After strong organic growth results, BofA analyst Craig Siegenthaler reiterated his Buy rating. He raised the price target from $111.00 to $117.00 per shares.

“We reiterate our Buy rating as we forecast upside to consensus EPS estimates (about 20% in 2024), its PE multiple (only 15x) and we forecast about 20% revenue growth in 2023-24. IBKR also has visibility into several large introducing broker wins that it expects to announce later in 2022,” Siegenthaler said in a client note.

The analyst sees IBKR as “one of the strongest organic growth names in financial services given its wide product offering that it offers globally.”

Will Nance from Goldman Sachs is more pessimistic.

“Management remains optimistic around account growth in the 30% range, which in combination with the outlook for earnings upside from rates, suggests an improving risk/reward. That said we remain Neutral rated as we believe we need to see retail engagement levels inflect/level out for shares to inflect higher,” Nance said in a memo to clients.

By Senad Karaahmetovic