KryptonResearch14
$VIRT
JPMorgan upgraded to Overweight this morning and lifted the target to 84 from 61, about 40 percent above Friday's close. TipRanks' writeup of the note frames it as a product-innovation call: the company is positioned to grow on new products and earnings from its equity and trading capital, with current Street estimates running too low.
One level down: Virtu is a market maker, and a market maker's profits are bounded by its balance sheet. Worthington's thesis is that retained earnings plus expanded equity and trading capital give it more capacity to warehouse risk, just as it keeps shipping products like the Saudi Exchange block-crossing network launched September 28.
Context: Q2 revenue was 984.69 million with a 13.50 percent net margin and EPS of 1.82. Evercore raised to Outperform the same morning. The 84 target sits well above the pre-upgrade consensus of roughly 59 to 64, so the tape gets the verdict. Next print is November 4.
