Interactive Brokers Group (IBKR -4.3%) fell as much as 6%, after lower May daily average revenue trades--DARTs. The DARTS declined from April, offsetting solid account and margin loan growth, SunTrust analyst Douglas Mewhirter wrote in a note to clients, Bloomberg reports.
On Friday, Bloomberg Intelligence analyst Sharnie Wong wrote that IBKR's valuation premium to its U.S. peers is close to record levels, and that IBKR "profit will need to meet market-growth expectations in order to sustain its valuation premium."
Mewhirter, however, sees IBKR account and asset growth justifying " a higher multiple than its peers despite diminishing benefits from further rate increases."
Mewhirter's 2018/'19 EPS estimates are unchanged at $2.23/$2.54; he rates the stock a "hold."
Previously: Interactive Brokers Group May DARTs down 4% from April, up 16% Y/Y (June 1)
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