RBC has reiterated its “outperform” rating on IG Group Holdings Plc (LSE:IGG) and increased its price target from 1,150p to 1,300p, saying the shares still have upside despite a strong recent run.
The broker pointed to IG’s robust cash generation, healthy balance sheet and ability to deliver steady earnings growth, even in more volatile markets.
It also noted that IG has been steadily expanding its product range and geographic reach, which should help diversify revenue streams and reduce reliance on short-term trading activity.
RBC believes that the current share price undervalues the company’s potential, especially given management’s consistent track record of hitting targets and returning excess capital to shareholders via dividends and buybacks.
The higher price target reflects improved forecasts for earnings and profitability over the next couple of years, underpinned by continued investment in technology and client acquisition.
Overall, the bank sees IG as well-positioned to benefit from market volatility while steadily building its long-term growth profile.
The shares wee static at 1,141p.