Virtu Financial (VIRT) presents a buying opportunity following recent underperformance, as the market maker's valuation has fallen well below historical levels and it remains positioned for long-term growth, BofA Securities said Tuesday in a report.

BofA is implying about 33% upside from Monday's close. The firm said Virtu's shares have derated by 24% over the past three months to roughly eight times forward earnings, one standard deviation below their five-year average.

While Virtu has seen some market share slippage, the brokerage said it remains bullish on the market maker's long-term growth, supported by expansion into options, cryptocurrency, and credit trading under new leadership, as well as steady gains in its core retail brokerage business.

The firm also expects Virtu to post a 35% earnings beat, saying intra-quarter data points to a milder slowdown than the Street anticipates. Concerns around lower volatility and buyback activity appear "overblown," according to the report.

BofA raised its rating to buy from neutral, with a $45 price objective on Virtu shares.

Virtu Financial shares were up more than 3% in recent trading.

Price: 34.91, Change: +1.05, Percent Change: +3.10