Interactive Brokers initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst James Yaro initiated coverage of Interactive Brokers with a Neutral rating and $97 price target, offering 6% upside. Interactive offers “unique structural growth and best-in-class margins,” but faces increasing cyclicality from growing net interest income and 40-day balance sheet duration that presents notable earnings risk from interest rate cuts, more than peers, the analyst tells investors in a research note. The firm says that while the stock’s valuation appears relatively inexpensive in an historical context and versus peers, NII risk from rate cuts will likely weigh on performance.