BGC Group: Fenics Growth Set To Drive Further Upside
Summary
- Q4 revenue was up 10.8% year over year, with adjusted earnings up 19%.
- Looking ahead, margins are expected to rise due to its faster growing, higher margin Fenics electronic trading platform.
- FMX is showing impressive volume growth, and will be the main growth driver going forward.
- Fenics alone could be worth more than the current market cap when valued in line with peers, making the current valuation attractive.
- As a result, I rate BGC stock as a Buy.
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