Flow Traders: "Growth With A Volatility Kicker" - Jefferies starts with "buy"

Flow Traders

29/01/2021 09:09

** Jefferies starts Amsterdam-based electronic liquidity
provider Flow Traders  FLOW.AS  with "buy", citing strong growth
in exchange traded products (ETPs), potential market share gains
in the U.S., and upside from pandemic-led market volatility
    ** The broker expects the first two factors, together with
diversification in fixed income and forex trading, to support
earnings per share (EPS) growth of 10% per year
    ** Jefferies says there is room for further growth in ETPs
as they account for just 5% of global equity assets and only
about 1% of bond market notional outstanding despite their
recent growth
    ** "Revenue is strongly geared into spikes in volatility
across a range of asset classes which can provide upside," it
adds
    ** High-frequency traders, which typically deploy
sophisticated algorithms and powerful computers to move in and
out of markets at lightning speeds, tend to do well when markets
are volatile
    ** Among 7 analysts who cover Flow Traders, the breakdown of
recommendations is 4 "strong buy" or "buy", 2 "hold", and 1
"sell"

    
    

 ((dagmarah.mackos@thomsonreuters.com))