On Monday, Jefferies updated its outlook on Plus500 (LON:PLUSP) Ltd (PLUS:LN) (OTC: PLSQF), increasing the price target to GBP28.00 from GBP23.00 while maintaining a Buy rating. The adjustment follows Plus500's latest guidance, suggesting a strong performance ahead.
The company, known for its online trading platform, has raised its guidance, a move that Jefferies interprets as a sign of high confidence in surpassing current market expectations. This optimism is based on Plus500's conservative management history, indicating that the upward revision is significant.
Jefferies noted that Plus500's core revenues have grown by 8% year-over-year to $329 million, with total revenues also increasing to $398 million. These figures contribute to the firm's positive outlook on the stock. The analyst also highlighted the company's robust cash position, which exceeds $1 billion, amounting to more than half of Plus500's market capitalization.
In addition to the strong revenue performance, Plus500 announced new distributions totaling $185.5 million. This move is anticipated to be well-received by the market, further bolstering investor sentiment.
The firm's upgraded financial forecasts include a 2% increase in EBITDA and Net Income estimates, alongside a significant 19% rise in EPS, attributed to a lower share count. This comprehensive financial growth underscores Jefferies' decision to raise the price target and reaffirm a Buy rating for Plus500 shares.
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