LONDON (ShareCast) - (Sharecast News) - House broker Liberum hiked its price target on shares of Plus500 to 1,950p from 1,680p following a "record-breaking" set of results.
Plus500 more than tripled its interim dividend and reported soaring first-half revenue and profit driven by "unprecedented" volatile markets during the Covid-19 crisis. Pre-tax profit rose to $363.2m (£278m) from $63.9m in the six months to the end of June from a year earlier as trading income jumped to $564.2m from $148m.

Liberum said the record results are due to more than just favourable market conditions.

"They also reflect the benefits of the group's best-in-class platform, which continues to deliver despite lower leverage limits," it said. "Its scalable technology and agile marketing algorithms has enabled it to win significant market share, drive continued improvement in financial returns, and be one of the first companies in Israel to receive the status of a Preferred Technological Enterprise."

Liberum, which reiterated its 'buy' rating on the stock, noted that this accreditation brings a number of benefits including significant tax credits, which have resulted in the broker increasing its medium-term earnings per share forecasts by an average 21%.

It said the current discount at which the stock trades versus its peers is set to unwind given the performance of the platform during the first six months of the year.

At 1400 BST, the shares were up 7.9% at 1,352.51p.

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