Goldman Sachs Believes Tradeweb Markets Sell-Off is Overdone
Tradeweb Markets, a top player in electronic trading that has handled assets worth over $3.7 quadrillion since its launch, has slipped by 20% from its highest point last year amid concerns about its growth.
In its report, Goldman Sachs believes that the key fears among investors are a bit overdone. Investors are concerned about the sustainability of its business model and the long-term risks from tokenization of real-world assets.
GS believes that the company is well positioned to navigate these challenges and that its stock is highly attractive. It trades at a forward PE ratio of 25, lower than the five-year average of 40.
The most recent results showed that its business continued to thrive, with revenue rising by 21.2% to $617 million. Its average daily volume for the quarter jumped by 31.4% to over $3.3 trillion, with rates being its biggest business.
