Liberum hikes target for Alpha FX, says estimates 'conservative'

Analysts at Liberum hiked their target price on shares of Alpha FX after the currency management specialist reported a more than tripling in profits at the half-year stage.

Earlier in the session, the firm posted a 214% surge in its profits before tax, alongside an improvement in underlying margins to 45%.

According to the analysts: "These results clearly demonstrate the group’s ability to expand rapidly and profitably into new areas and geographies, and deliver to plan.

"[...] Backed by a strong balance sheet and corporate culture, we expect Alpha FX to continue to successfully expand the scope of its business in future periods as well."

Having already raised their estimates for the company by more than 12% after a trading update in July, they now kept them unchanged.

Nonetheless, judging their forecasts to still be "conservative", they raised their target price from 1,800.0p to 2,000.0p and kept their recommendation at 'buy'.