Deutsche Bank lifted its price target on IG Group on Wednesday to 1,750p from 1,650p after the online trading provider upgraded its guidance for 2026 and its medium-term outlook as it reported a jump in first-quarter revenue.
Source: Sharecast
Deutsche said Q1 total revenue was around 13% ahead of recently-issued guidance and 6% ahead of its own forecast, driven by higher volatility in the period, in particular in the core OTC segment, more than offsetting slightly weaker outcomes in the other areas.
"Management guidance is also increased, with FY26 organic revenue now expected to grow 10-15% (versus high single digits % previously) and future years more than 10% (vs high single digits % previously)," it noted.
"EBITDA margin guidance in the mid-40s% is unchanged, we think reflecting the higher revenue being generated being reinvested into further customer acquisition/marketing costs, which in turn should help to drive future revenue growth from a higher installed customer base."
Overall, DB said the new guidance implies low-mid single digit percentage increases in revenue and EBITDA versus previous guidance. "We view this as a robust update," it said.
At 1235 BST, IG shares were up 2.1% at 1,779p, having surged on Tuesday.
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