Piper Sandler Analyst Boosts Bgc Group Price Target by 11.1% on Strong Buy Rating

Piper Sandler's Patrick Moley raised their price target on Bgc Group (NASDAQ: BGC) by 11.1% from $9 to $10 on May 6, 2024. The analyst maintained their Strong Buy rating on the stock.

Moley's update followed an assessment of Bgc Group's first quarter 2024 earnings report and participation in the earnings call. Despite reporting substantially stronger revenue growth, BGC trades at a discount compared to comparable indices, according to the analyst.

In the first quarter of 2024, Bgc Group reported earnings per share (EPS) of $0.25, in line with the Zacks Consensus Estimate and an 8.7% increase from Q1 2023's $0.23. The company's revenue for the quarter was $578.61 million, missing the Zacks Consensus Estimate by 1.09% but surpassing Q1 2023's $532.87 million by 8.6%. Net income for Q1 2024 was $123.2 million, representing a 6.6% year-over-year increase.

Looking ahead, Bgc Group's management guided for revenue in the range of $520 million to $570 million and net income between $120 million and $130 million for the second quarter of 2024.

Chairman & CEO Howard W. Lutnick expressed optimism about the company's performance, stating, "This is a great time for Bgc. Today, we reported record Q1 revenues and EPS, and last week, we completed our FMX transaction and announced our strategic partners."

Lutnick also highlighted the formation of FMX, in which 10 major financial institutions invested $172 million at a post-money equity valuation of $667 million. He emphasized the value these partners bring to FMX, validating both the company's technology and its vision to reshape the U.S. interest rate markets.

It is worth noting that 100% of top-rated analysts currently rate BGC as a Strong Buy or Buy, with no analysts recommending a Hold or selling the stock. This positive sentiment aligns with the recent performance of BGC's stock price.

Since the company's latest quarterly report on April 30, 2024, the stock price has increased by 11.7%. Year-over-year, the stock has seen an impressive growth rate of 110.8%. During the same period, BGC has outpaced the S&P 500, which has grown by 25.2%.

Piper Sandler analyst Patrick Moley, who raised the price target on Bgc Group, is ranked in the top 18% out of 4,575 Wall Street analysts by WallStreetZen. Moley specializes in the Technology and Financial Services sectors and has an average return of 24.2% and a win rate of 88.9%.

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