StoneX: The Market Is Underestimating Its Higher Earnings Base
StoneX Group (SNEX) is rated Buy, with 18% upside to a $67 fair value, reflecting robust profitability and synergy realization post-R.J. O'Brien acquisition. SNEX's cost structure is highly variable, supporting profitability even during quieter quarters, while client float income remains resilient without requiring high volatility. Fiscal Q4 results are anticipated to exceed consensus, leveraging CME's record volumes and ongoing cost synergies, with EPS estimates above market expectations.