The London Stock Exchange-traded forex broker Plus500 (LON:PLUS) got a “Buy” recommendation from the German investment bank Berenberg. Its analysts also issued a new target price of GBX800 per share. This represents around 26% increase from Plus500’s price of GBX630 per share at market open on Thursday and indicates high investor expectations.
The Berenberg price of GBX 800 is higher than the highest price of GBX 781 in the past 52 weeks and way above the average range of GBX 627.09 – 636.00 per share. Currently the broker has 114.89 million shares in issue and a market capitalization of GBP 732.5 million.
In the week between March 21 and March 25 Plus500 lost 18.9% of its market value and as of March 25 it was GBP 667.4 million and was overtaken by CMC Markets, which ranked as the third largest forex broker in terms of market capitalization.
In 2015 Plus500 posted a 20.4% increase in its consolidated revenue, but a 5.8% drop in the consolidated net profit.
Plus500 offers trading in forex, options, contracts for difference (CFDs), commodities, indices, and exchange-traded funds (ETFs). It operates its own online trading platform for CFDs available in over 31 languages on desktop and Android, Windows and iOS mobile operating systems. According to Investment Trends report from July 2015, it is the second largest CFD provider in the UK.
Plus500 is licensed by three regulators – the Cyprus Securities and Exchange Commission (CySEC), UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). The broker operates in the European Economic Area (EU member states, plus Norway, Lichtenstein and Iceland), Gibraltar, Australia and certain other jurisdictions across Asia, the Middle East and elsewhere. Its subsidiaries include Plus500UK, Plus500AU, Plus500CY and Plus500IL.
Berenberg Bank is active in investment banking, particularly pan-European equity research, brokerage and capital markets transactions, in addition to private banking for wealthy customers and institutional asset management. It has offices in London, Zurich, Frankfurt, several other European countries, as well as the Americas and Asia.