Barclays plc believes IG Group Holdings Plc (LSE:IGG) is well positioned for growth going into next year.
The online trading provider can look forward to potential growth through tastytrade, the high growth US online brokerage and trading education platform that it acquired for US1bn in June this year.
Barclays believes that tastytrade, founded in 2011, is in a strong position to offer derivatives on crypto if regulations allow.
Despite the volatility of COVID markets, it predicts that even a 20-40% increase in active accounts could increase profit before tax by up to 7% for financial year 2022.
The broker also believes tastytrade could benefit from a rise in the US interest rates and a 1% rise could add up to 43% to tasty’s profit.
Barclays has an overweight stance and a target price of £11.85.