Interactive Brokers initiated with a Buy at Redburn Atlantic

Redburn Atlantic initiated coverage of Interactive Brokers with a Buy rating and $100 price target, representing 30% upside to the current share price. The stock’s valuation is not a demanding for a business with its growth track record and opportunity set, and with no debt and a high margin, the analyst tells investors in a research note. The firm says the company’s brokerage business is underpinned by a proprietary technological advantage, which enables it to simultaneously offer among the lowest overall transaction costs to customers and have one of the lowest cost structures in the industry.