Jefferies Cuts Virtu (VIRT) Target to $49, Maintains Buy Rating

Core Viewpoint - Virtu Financial is considered one of the most undervalued financial stocks by Wall Street analysts, despite a recent downgrade in earnings estimates due to reduced market volatility [1][2][3]. Group 1: Earnings Forecast and Price Target - Jefferies has cut its price target for Virtu Financial from $51 to $49 while maintaining a "Buy" rating, citing a revised adjusted earnings estimate for Q3 2025 from $1.02 per share to $0.83 per share [1][2]. - The downgrade in earnings forecast is attributed to a 31% decrease in the average level of the VIX index compared to the previous quarter, indicating lower market volatility [2]. Group 2: Business Model and Market Position - Despite the reduced volatility, Jefferies maintains that retail trading engagement remains positive, which supports Virtu's core revenue streams [3]. - Analysts express confidence in Virtu's business model and profitability, highlighting its ability to generate strong financial results even during periods of lower volatility [3]. Group 3: Company Overview - Virtu Financial, Inc. is a financial services company that utilizes proprietary technology to provide market-making, execution services, and multi-asset analytics across various sectors including equities, fixed income, currencies, commodities, options, futures, and cryptocurrencies [4].