Key insights
- Deutsche Bank raised its price target for IG Group, citing a review of UK companies that successfully transitioned to US primary listings. These companies generally outperformed US and UK indices and saw P/E re-ratings. IG Group is considering a US listing, which could lead to similar positive re-ratings and increased investor interest, potentially boosting its stock performance.
Investing.com - Deutsche Bank raised its price target on IG Group Holdings shares (LON:IGG) (OTC:IGGHY) to GBP20.00 from GBP17.50 while maintaining a Buy rating. The stock currently trades at $21.75, near its 52-week high, and has delivered a remarkable 54% return over the past six months. According to InvestingPro analysis, the stock remains undervalued with a Fair Value of $26.47, placing it among undervalued opportunities in the financial services sector.
The firm reviewed the performance of companies that previously held UK listings and recently moved to primary listings in the United States. The analysis examined several companies including Ferguson, Arm, CRH, and Indivior.
Deutsche Bank found that most of these companies delivered strong absolute total shareholder returns since their US primary listings. The companies generally outperformed both the S&P 500 and FTSE Allshare indices, as well as their respective sectors.
The companies analyzed also experienced meaningful price-to-earnings re-ratings, both in absolute terms and relative to the S&P 500 and FTSE Allshare. IG Group previously indicated it is considering a US listing for its shares as part of a wider strategic review.
The company stated the strategic review is expected to be concluded by autumn.
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