Bank of America’s Eli Abboud said BGC Group Inc. (NASDAQ: BGC), is “the most overlooked Trump trade among diversified financials.”
Abboud believes that the shares of this financial services firm will continue to rise in value through 2025.
Analysts recently began covering BGC, which they said would reach $16 this year.
He has set a price target that indicates he could achieve a further 65% increase from the current level.
BGC Stock to Benefit under Trump 2.0
Eli Abboud believes that BGC’s stock will rise sharply under Trump.
The company’s trading products, such as the FMX Futures Exchange recently established, stand to gain from the focus of the new government on deregulation.
The analyst said in a recent research note that he believes the regulatory environment has been eased and the trading volume will increase.
BGC’s shares are currently yielding 0.83%, which is not very exciting but still a reason enough to include them in your investment portfolio.
BofA is bullish about BGC stock.
Bank of America’s analyst, who is extremely bullish about the new FMX Exchange of his firm, sees futures contracts as an opportunity worth $2 billion that “ripe for disrupting”.
In his latest report, the author said that BGC would be able to steal market share away from CME Group by modernizing futures trading.
Eli Abboud also likes BGC, as it is one of the most suitable stocks for buying in energy transition due to its exposure to many products.
The rising global demand for energy and the continued move away from fossil-fuels will benefit BGC’s stock, he believes.
The shares of this New York-based firm have fallen by 15% from their 52 week high.
What BGC achieved in the latest quarter reported
Abboud made his bullish prediction on BGC just days after BGC reported a 25-cent per share profit for the fourth quarter.
However, the Nasdaq listed company did slightly exceed expectations in terms of revenue, which came to $516.76 millions for Q4.
Sean Windeatt, chief operating officer at BGC, attributed the strength of the recent quarter to “ECS and Rates businesses as well as Foreign Exchange, which continues to outperform in the market”.
BGC confirmed that “the momentum has continued into 2025 with current trading volumes outpacing those of last year.”
Piper Sandler, the only other firm than Bank of America to cover BGC’s stock, is positive about the company.
The $12 price goal translates into a roughly 14% increase from this point.
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