With Interactive Brokers Group (NASDAQ:IBKR) increasingly willing to return capital to shareholders, their dividend will probably drive more interest in the company.
Ticonderoga said, "...Given the cash flow generating capacity of the business (cash balances are up - $500m since the beginning of the year, while borrowings have declined) and management's newfound willingness to return excess capital to shareholders, we believe the dividend could raise some new interest in IBKR. We are still waiting to see how the regulatory endgame plays out, but generally believe it will be positive for IBKR. We continue to see upside in the stock to the low $20s...Our 4Q10 EPS estimate stands at $0.25, above consensus estimates of $0.21...our 2010/2011 EPS estimates ($0.70/1.29)."
They maintain a "Buy" rating on Interactive Brokers Group, which closed Tuesday at $18.31, gaining $0.75, or 4.27 percent. Ticonderoga has a price target of $20 on them.
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