Bank of America analyst Eli Abboud says BGC Group Inc (NASDAQ: BGC) is the “most overlooked Trump trade in diversified financials.”
Shares of the financial services company have already rallied some 10% this week – but Abboud continues to see significant further upside in them through the remainder of 2025.
The analyst recently assumed coverage of BGC stock that it said could hit $16 by the end of this year.
His price objective indicates potential for another 65% gain from current levels.
BGC stock to benefit under Trump 2.0
Eli Abboud expects BGC stock to rally hard under the Trump administration.
That’s because the company’s trading offerings, including the recently launched FMX Futures Exchange stand to benefit from the new government’s focus on deregulation.
“We think an eased regulatory backdrop significantly accelerates FMX Futures’ ramp while the new administration’s agenda (bank deregulation, deficit spending, foreign policy) benefits trading volumes,” the analyst told clients in a research note this week.
Note that BGC shares currently pay a dividend yield of 0.83% at writing, which, while not too exciting, still makes up for a good additional reason to have them in your portfolio.
Why else is BofA bullish on BGC shares
The Bank of America analyst is uber bullish on the firm’s new FMX exchange as he sees rates futures trading as a $2 billion opportunity “ripe for disruption”.
BGC will succeed in stealing market share from the likes of CME Group as it continues to modernize futures trading, he added in his recent report.
Finally, Eli Abboud likes BGC as it’s one of the best stocks to buy for energy transition as it has exposure to a whole bunch of products within that space.
He, therefore, expects BGC stock to benefit from the rising demand for electricity and a continued global move away from fossil fuels.
Shares of the New York headquartered firm are currently down some 15% versus their 52-week high.
How BGC did in its latest reported quarter
Abboud’s bullish call on BGC stock arrives only days after the company reported in line per-share earnings of 25 cents for its fourth quarter.
The Nasdaq-listed firm did, however, slightly topped expectations for revenue that printed at $516.76 million in Q4.
Sean Windeatt – the chief operating officer of BGC Group attributed strength in the recently concluded quarter to the company’s “ECS, Rates, and Foreign Exchange businesses, which continue to outperform the market”.
BGC also confirmed at the time that the “momentum has carried forward into 2025, with trading volumes currently outpacing last year’s.”
Piper Sandler – the only firm other than the Bank of America that covers BGC stock is also positive on the financial services company.
Its $12 price target translates to about a 14% upside from here.
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