Liberum Capital confirms “buy” recommendation for Plus500, hikes target price

Liberum Capital confirms “buy” recommendation for Plus500, hikes target price

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Liberum Capital, the independently-owned pan-European investment bank, confirmed its “buy” recommendation for the London Stock Exchange-traded forex broker Plus500 (LON:PLUS) in a new report by its analysts, released on Friday.

It comes a day after the broker’s founders offloaded 13% (15 500 000 shares) of their shares for £100.75 mln (GBX 650 per share) and Plus500 became one of the first forex brokers to obtain a trading arena license from the Israel Securities Authority (ISA).

Following the announcement of the sale, the Plus500 shares fell from 750p on market close on September 28 to GBX 622 shortly after the LSE opened on September 29.

Later the price recovered somewhat and on October 4 the markets opened at 664p. At the same time, in its report Liberum Capital gives a GBX 803 price objective. It is 14% higher than from a previous Liberum Capital report from July.

Meanwhile, also on September 29, insider Michael (Mark) Charles Fairbairn sold 25 000 shares of the business’s stock, at an average price of GBX 650, for a total transaction of £162 500.

Currently Plus500 has a market capitalization of £768.94 million.

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.

This Monday Plus500 announced its Australian subsidiary has obtained a license from New Zealand’s Financial Markets Authority.

Besides the two recent additions, Plus500 is licensed by three other 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.

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