Shares in IG Group Holdings Plc (LSE:IGG) were down 8.6% amid some simmering disappointment in the wake of its third-quarter progress report.
Admitting the period had been 'quieter', the group maintained its revenue and profit expectations for the year.
The keen-eyed in the Square Mile noticed IG’s ‘standalone business’ was down by 7%, while active client numbers fell by 5%.
“The overall conclusion of the statement is that revenue and profits are expected to be in line with market expectations, supported by the strength of interest income,” said Peel Hunt in a note to clients.
The broker is currently forecasting profit before tax for the 12 months of £499mln, which is marginally ahead consensus.
Repeating its ‘add’ recommendation and 1,065p share price target it pointed out that the stock is currently changing hands eight times earnings, which equates to an enterprise multiple of 4.7 times.
“Perhaps there is nothing in this statement to move earnings, but the stock remains attractively valued in our view,” said Peel Hunt.