J.P. Morgan analyst Kenneth Worthington initiated coverage on Virtu Financial Inc., believing that the company is "on track for the solid integration" of Investment Technology Group Inc.
The analyst expects the deal to add 40 cents to EPS after cost synergies are fully realized and is confident that Virtu will "meaningfully lower" costs at ITG.
"Virtu seems particularly well positioned to be an outsourced trading desk, although other benefits of the combination are playing out more quickly," Worthington wrote in a note. He rated the stock "overweight."
Worthington's adjusted EPS estimates are $1.11 for 2019 and $1.97 for 2020. The price target is $23.
