Cavendish has maintained its 'buy' rating on TP ICAP PLC (LSE:TCAP), the financial market infrastructure group, after first-quarter revenues rose 13% year on year to £689 million, comfortably ahead of expectations.
The broker described the update as strong, with the group benefiting from elevated volatility levels driven by the geopolitical and macroeconomic backdrop.
Global Broking, TP ICAP's largest division, led the way with revenues up 15%, while Energy and Commodities grew 13%.
Liquidnet, the group's electronic trading platform, posted a 9% rise in revenues as it continued to expand its core equities business and multi-asset execution offering.
The one softer spot was Parameta Solutions, TP ICAP's data and analytics arm, where revenues grew 4%, below Cavendish's full-year expectation of around 6%.
The broker noted, however, that the division has started to see contributions from recently hired sales staff and remains focused on winning new clients and expanding relationships with existing ones.
TP ICAP's board said it remains comfortable with the outlook for the remainder of the year at current foreign exchange rates.
Cavendish said it will review its forecasts following the update, though it made no immediate changes to its estimates or its 325p target price, which implies modest upside from the current share price of 318p (up 1% in early trading).
The shares have risen 27% over the past three months, reflecting both the favourable trading environment and improving sentiment towards the stock.
On current forecasts, TP ICAP trades on a price-to-earnings ratio of 9.5 times 2026 estimated earnings and offers a dividend yield of 5.5%.