On Monday, Evercore ISI took a positive stance on Virtu Financial (NASDAQ:VIRT), raising the stock's price target from $19.00 to $21.00. The firm maintained an In Line rating for the stock. The decision to increase the price target was driven by the anticipation of higher adjusted net trading revenue, leading to an upward revision of earnings per share (EPS) estimates.
The firm's analyst provided updated forecasts, stating that the first-quarter 2024 EPS estimate for Virtu Financial has been increased to $0.52, up from the previous $0.36. This new estimate slightly surpasses the mean consensus of $0.51. The revision reflects stronger-than-expected adjusted net trading revenue.
For the full year 2024, Evercore ISI now expects Virtu Financial to report earnings of $2.15 per share, an increase from the former estimate of $1.97. This revised forecast is slightly above the consensus estimate of $2.09. Looking ahead to the following year, the firm's 2025 earnings estimate was also raised to $2.30 per share from the previous forecast of $2.25, although this figure is slightly below the consensus estimate of $2.36.
The new price target of $21 is based on approximately 10 times the adjusted forecasted 2025 earnings of $2.03 per share, which excludes non-cash equity-based compensation. This valuation reflects a positive outlook on Virtu Financial's financial performance over the next two years.
Evercore ISI's adjustment to Virtu Financial's price target and EPS estimates signifies confidence in the company's ability to outperform prior revenue and earnings projections. The firm's analysis suggests a favorable financial trajectory for Virtu Financial, as reflected in the revised figures.
InvestingPro Insights
In light of Evercore ISI's positive stance on Virtu Financial (NASDAQ:VIRT), recent data from InvestingPro further complements the firm's outlook. With a market capitalization of $3.26 billion and a trailing P/E ratio of 13.38, Virtu Financial stands as a company with a solid valuation in the financial sector. The company's commitment to shareholder returns is evident with a robust dividend yield of 4.61%, which is particularly notable given the company's history of maintaining dividend payments for 10 consecutive years.
InvestingPro Tips indicate that management's aggressive share buybacks and expectations for net income growth this year align with Evercore ISI's forecast of rising earnings per share. Furthermore, the InvestingPro Fair Value estimate of $26.99 suggests potential undervaluation at the current price, providing an additional layer of insight for investors considering Virtu Financial's prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on Virtu Financial, which can be accessed at https://www.investing.com/pro/VIRT. And for those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 5 more InvestingPro Tips available, investors can gain deeper insights into Virtu Financial's financial health and market position.
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