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also why release the trading update on 27th March when they told us they were going to "announce its pre-close FY23 update on Friday 14 April 2023" within the January trading update ? Why the rush to bring it forward ?
Hi Freedom
Its not the revenue, its reduction is profit due to expansion which personally I feel justified :-
FY 2023 net operating income is expected to be between £280-290 million
FY 2022 net operating income guidance reiterated at £250-280 million.
FY 2023 operating costs circa £230m
FY 2022 operating costs circa £180m
Hence they can still point to growth whilst reflecting a transient increase in costs:- "These strategic objectives underpin the expected 30% growth in net operating income based on the 2022 results over the next three years."
Brokers
Jefferies downgrade to Hold, cut PT to 190p.
CMC Markets Plc : Peel Hunt buy cuts target price to 355p from 462p
CMC Markets Plc : RBC buy cuts target price to 310p from 350p
"The 6 analysts offering 12 month price targets for CMC Markets Plc have a median target of 242.00, with a high estimate of 355.00 and a low estimate of 190.00. The median estimate represents a 37.97% increase from the last price of 175.40."
I also assume the recent volatility has been of benefit to cmc ,do they hedge against their clients trades or are they exposed to being on the wrong side of the trade. Who other than Jeffries downgraded cmc and the recent profit guidance how far below expectations is it, ie 20 m ?
still puzzled with several things regarding the trading update,
- "lower equity volumes in Feb & March" - really ? the sell off and volatility just prior to the update must have been off the scale and right in their sweet spot, I would have thought they must have been inundated with margin calls, maybe the update was written before the recent volatility
- why issue the update during trading hours ? - most unusual
- all these broker downgrades coming in day by day rather than all at once
It's like they are all doing their best to drag the sp down, I know it's unlikely but the sceptic in me is looking for some form of ulterior motive
167, blink and you missed it......and I did
Jefferies have always been the lowest of all brokers and yet its still 20% above current
Here is the full set for clarity:-
Share price forecast in GBX
The 6 analysts offering 12 month price targets for CMC Markets Plc have a median target of 242.00, with a high estimate of 355.00 and a low estimate of 190.00. The median estimate represents a 37.97% increase from the last price of 175.40.
Jefferies downgrade to Hold, cut PT to 190p. Third downgrade in a week.
Definitely
The yield is now close on 6% and from a Technical Analysis perspective its way oversold on multiple indicators
Lets not forget this is a no debt company, making decent a profit (operating margin is 31%!) , that's sat on 33% of its market cap in free cash flow!
Sellers drying up on the SETS order book
Close on the lowest price for 3 years
Just bought some for the SIPP even though im already overweight in my DMA account
Still top rated Super Stock on Stockopedia
@denfos
You’re on to a looser here. Wouldn’t pay anymore than £1 a share. Shouldn’t be too long.
Jimbo is this the other downgrade?
CMC Markets Plc : Peel Hunt cuts target price to 355p from 462p
So downgraded to DOUBLE the current share price?
Thanks for dropping the SP, good entry at 180, undervalued, profitable business, target 240, two months.
180p is a p/e of 7.2 - IGG available at 6. No reason to get involved above 150p.
AceofClubs
Also, surely a forecast £60m profit on £280m worst case op income is excellent. Keep the LT view, Lord Cruddas has too much to lose here to be doing the wrong thing. Singapore App starting soon, etc.
Karlo90, if Covid is what is needed to get this up to 300p + again, then bring it on.. ..!!
‘Market volatility is vey light’. Really?
pre covid this traded sub 100p a lot as well. Hope for covid again if you are long!
can't see a quick recovery here after IGG bad statement the other week. Market vol is very light as well which is terrible for business. This could easily drift towards 100p and if regulators rear their heads then even 50p long term low. Dangerous hold either way.
Jimbo deffo short, lets be clear
CMC Markets Plc : RBC cuts target price to 310p from 350p
Whats the other?
Agreed. I'm adding at this level.
That’s the time to buy!
Two broker downgrades this morning
Because costs have risen profits will be down twenty percent so so drop looks justified but I will be adding.
Added at 189, great divi now. Be back to 250 sometime during the year.