X-Trade Brokers: morphing into a Pan-European super app (BUY - initiation of coverage)
We initiate coverage of X-Trade Brokers (XTB), with a BUY and a 12M price target (PT) of PLN 81.7 (c.18% upside, c.22% total shareholder return). XTB is a pan-European retail broker, which has evolved from a pure Contract For Difference (CFD) house into a scaled, multi-asset investing app in largely under-penetrated European markets. We see the company using its highly-profitable CFD engine to fund a land grab in CEE and selected Western European markets, delivering a >30% ROE on our base case, with the potential for additional upside from new products and optionality in EM. We expect the strong evolution of active clients and client assets (AUC) over 2025-28E (a c.45% CAGR), with near-term margin pressure from elevated marketing intensity, and we forecast the bottom-line growth to reaccelerate from 2026E-onwards. On our 2026E numbers, XTB is trading at 8.0x EV/EBITDA and 2.6x EV/sales, below our blended peers’ multiples, but still closer to the legacy CFD houses than to global multi-asset platforms.X Trade Brokers Dom Maklerski SA is a Poland-based brokerage house. The Company's offer comprises foreign exchange market (FOREX), commodities and indices trading, equity CFD, options, as well as other over the counter (OTC) derivatives in the European Union. The Company offers online trading and operates xStation, xOption, xMobile, xTab, Sidoma and MetaTrader trading platforms. It also provides market analysis and trading updates. It has a number of branches across Europe, in the Czech Republic, France, Germany, Hungary, Italy, Portugal, Romania, Slovakia and Spain, among others.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.