Plus500 – institutions continue to buy as analysts remain bullish

CFD broker Plus500 (LON:PLUS) continues to court the attention of large international financial institutions, the latest development being depicted in today’s filing by the company that JP Morgan Chase & Co has crossed the 15% mark in its shareholding of the company, which became a publicly listed entity recently after a very high value IPO.

In addition to JP Morgan’s continued interest in acquiring incrementally higher stakeholdings, Odey Asset Management now holds above 10% share in Plus500. These two institutions alone now own more than 25% of the company.

The optimistic outlook from industry experts has been backed up by Plus500’s stock having had its “buy” rating reaffirmed by research analysts at Liberum Capital in a report released on Tuesday.

Liberum Capital currently has a GBX 750 ($12.77) price objective on the stock, which in turn serves to indicate a potential upside of 68.01% from the stock’s previous close.

A number of other firms have also recently commented on Plus500, with analysts at Numis Securities Ltd reiterating a “buy” rating on shares of Plus500 in a research note on Tuesday. They now have a GBX 824 ($14.04) price target on the stock.

The continued upward direction of the highly efficient company which began its life relatively recently in Israel, home to the lion’s share of innovative and successful FX companies, demonstrates that shrewd management direction, efficient expansion of business within the right jurisdiction, in Plus500’s case London,  combined with the correct methodology when going public, is the route to success.

In Plus500’s case, the future appears assured.

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