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Cruddas owns too many shares for a bid (unless he wants out). Criminal the way this was dropped from £3! Very frustrating
Looks like Shore Capital have upgraded from Sell to Hold as well
Starting to look good
CMC Markets Plc : Peel Hunt raises target price to 200p from 140p
Expecting 170 shortly as they are trying to limit if to that level. £2 incoming imho.
Got excited for 6 secs thinking BIDDDDDDDDDDDDDDDDD !
Sell: 171.20p | Buy: 153.00p
This news certainly adds further momentum to the recovery and great to get confirmation that H2 operating income remains on track for £167-187m. There is no pattern to H1/H2 trading here, however looking at historic splits since IPO it's unusual for strong momentum to only last 6 months. Consequently, I expect their FY25 guidance to come in well above the current market expectations which have a mid point of £295m, and could be anywhere up to the FY22 3 year target level of £360m. Couple that with the efficiency savings and operating income will be back well above £100m and I expect shares will be at least £2.50...
"Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes. The group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market leading," CMC said.
A share to hold, rerate well underway.
Upward trend to 219p + higher in 2024.
Reaping rewards of the strategy.
CMCX opened at 144p, not bad for a start
It certainly should.
And excellent reaffirmation
Trading remains in line with expectations and the Group is on track to deliver net operating income of between £290-£310 million for FY24.
160p opening if there's any justice.
Never nice to see people lose their jobs but these cost reductions will certainly give the share price a boost
Looks like CMC done incredibly well recently. IG revenue down but CMC up. Looks like they have grabbed market share but also as a small operator are much better placed to outperform. Seems IG has ran into difficulty. Cmc on the other hand just turning a corner..
Cheap
UK is so undervalued and neglected when you compare the moves stateside. Hope to see this back at £3 at some point. Fingers in many pies.
Elsewhere, RBC Capital Markets said it sees further upside at CMC Markets despite a near-50% jump in the stock over the past two months following a positive trading update from the online trading company.
The share price hit a yearly low of 86.9p in late November, after the company reported it swung to a loss before tax of £2m in its first half ended 30 September, while net operating income slumped 20% to £122.6m.
However, in a trading update two weeks ago, CMC said improved market conditions means it is now targeting a full-year net operating income of £290-310m, up from previous guidance of £250-280m.
The broker lifted its target price for the shares from 140p to p150p, keeping an 'outperform' rating, after lifting its earnings per share estimates for the current year by a whopping 219% to 7.85p. RBC is now forecasting a full-year pre-tax profit of £30.1m, up from an earlier forecast of £10.4m.
RBC kept its estimates for the next two years relatively unchanged and it noted "upside risk in the event of bouts of higher volatility, with elections in 2024 in the US and UK providing potential opportunities".
"Whilst outer year forecasts are unchanged our confidence in profit progression is also increased, given conservative growth forecasts, and as we await further details about potential cost efficiencies from FY25 onwards," RBC said.
"CMC shares have made a strong start to 2024 YTD (up 27% in total shareholder return terms), but the current valuation still screens as relatively undemanding when surplus capital is factored in."
CMC Markets Plc : RBC raises target price to 150p from 140p
Moving in the right direction but still way of true value IMHO
I was thinking more like 200p - 270p.
But I may be overtly optimistic on that target
Mary you here as well?
Seems quite undervalued here too so I'm here as well
Altough I don't post here.
165p is my trim target.
Shear class
The figures that you’ve stated in your previous post are very interesting. I use Stockopedia and the forecast figures for ‘25 which they are quoting is £320M revenue, eps 9p and 4.5 divi. I’ll keep an eye out to see if these forecasts are revised upwards following the managements bullish update.
The trading update on Monday was truly spectacular; from £122.6m of net operating income in H1 they now expect to report £290-310m for the FY. This means H2 is on track for £168-£188m in net operating income, for context if we exclude the covid fuelled 2021 period which had half year results of £230m & £178m, the next best result in CMC history was the £155m recorded in the 6 months to 31/03/22. Indeed, the last 5 half yearly periods to 30/09/23 had average net operating income of £138m, so Monday's jump was really impressive.
With operating costs expected to be flat vs H1 (£118m), the updated forecast numbers suggest that H2 pre tax profit will come in at £50-70m, which if realised at the midpoint would result in EPS of 16p a dividend payout of ~8p.
Why is this particularly notable in my opinion? Let's cast back to their 2022 results; "Investment in growth initiatives is expected to result in a 30% increase in net operating income over the next three years."
That was from a baseline of £282m net operating income, meaning their 3 year target for FY25 was ~£367m, or £183.5m a half, which is more or less in line with where H2 24 is forecast to land...
So are they on track for their medium term guidance? A level of income which would deliver operating profit of ~£130m based on operating costs plateauing at FY24 levels? I guess we'll have to wait a few months to find out! However, if they were to hit those targets in FY25 it would result in post tax profit of ~£100m, EPS of 36p and DPS of 18p.
That would mean shares trading at 127p are on a forward P/E of 3.5 and a FCF yield of nearly 30%. That ignores the >£200m net cash on their balance sheet too. It looks to be a very interesting play for a recovery over the next year IMO.
Probably will climb to 220p to retrace before the April
Probably will settle around 100p to fill the gap before the April
Shore reiterated a sell today, what are they on? 🚽
🧻🧻🧻
CMC Markets Plc : Peel Hunt raises to buy from add