IBKR’s 7.7% Jump: Growth Supports a Cautious Buy

I view IBKR’s +7.69% session move as partly supported by growth, but not enough to change my valuation discipline. Q3 revenue rose 15.5% year over year and net income 19.4%; EPS was $0.670, up 13.6%, but essentially matched the $0.671 estimate. Forecast EPS growth remains strong at 22.5% for 2027, implying a 25.2x forward P/E. Yet the 31.9x trailing P/E is rich versus Morgan Stanley at 15.1x and Charles Schwab at 15.8x, while free cash flow fell 81.8% to $814M. The consensus target of $104.30 suggests 24.8% upside, and shares remain 14.9% below their 52-week high despite today’s jump. I’ll initiate a small position, not chase aggressively; the move does not materially change my view.