CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

 228.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 317.00
  • 52 Week Low: 211.50
  • Currency: UK Pounds
  • Shares Issued: 279.82m
  • Volume: 26,105
  • Market Cap: £637.98m

Canaccord Genuity lowers target price on CMC Markets

By Iain Gilbert

Date: Monday 15 Aug 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity lowered their target price on financial services group CMC Markets from 257.0p to 224.0p on Monday, citing "material cost inflation" flagged by the company.
Canaccord Genuity downgraded its adjusted diluted earnings per share forecasts by 25% in 2023 and 10% in 2024, stating it forecasts just 18% growth in net operating income over the next three years, versus CMC's communicated plan to increase net operating income by 30%.

"This leaves our FY25 net operating income forecast circa 10% below the company's target level," said the analysts.

The Canadian bank added that its adjusted dilute EPS forecasts were now 8%, 29%, and 33% below current consensus and said it believes its own forecasts could still be "too optimistic".

"We roll forward our target date to CY24 (prev: CY23), to take account of CMC's growth initiatives starting to bear fruit. We take CMC's average one-year forward P/E multiple since listing as our starting point, which is 12.2x. We now apply a 10% discount to this to reach a target multiple of 11.0x, which we believe is justified by the downside risk to our below-consensus forecasts," said Canaccord, which reiterated its 'sell' rating on the stock.

"Applying an 11.0x multiple to our CY24E EPS forecast results in our new 224p TP (down from 257p), which implies 14% downside from the current share price and a -11% TSR. The next 12-month dividend yield at our new TP is 3.8% and the current buyback, is two-thirds complete."





Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

CMC Markets Market Data

Currency UK Pounds
Share Price 228.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 317.00
52 Week Low 211.50
Volume 26,105
Shares Issued 279.82m
Market Cap £637.98m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
50.99% above the market average50.99% above the market average50.99% above the market average50.99% above the market average50.99% above the market average
10.57% above the sector average10.57% above the sector average10.57% above the sector average10.57% above the sector average10.57% above the sector average
Price Trend
33.55% below the market average33.55% below the market average33.55% below the market average33.55% below the market average33.55% below the market average
22.14% below the sector average22.14% below the sector average22.14% below the sector average22.14% below the sector average22.14% below the sector average
Income
57.23% above the market average57.23% above the market average57.23% above the market average57.23% above the market average57.23% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average
Growth
0.79% above the market average0.79% above the market average0.79% above the market average0.79% above the market average0.79% above the market average
15.97% below the sector average15.97% below the sector average15.97% below the sector average15.97% below the sector average15.97% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 6
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CMC Markets Dividends

  Latest Previous
  Interim Final
Ex-Div 01-Dec-22 14-Jul-22
Paid 05-Jan-23 11-Aug-22
Amount 3.50p 8.88p

Trades for 09-Dec-2022

Time Volume / Share Price
11:38 1,000 @ 227.45p
11:13 2 @ 228.00p
10:44 1 @ 228.00p
10:31 1,309 @ 227.45p
10:19 400 @ 227.06p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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