Royal Bank of Canada has lifted its price target for IG Group to 1,275p, signalling continued broker confidence in the UK online trading group after the company’s strong recent results. According to MarketBeat’s report of the research note published on 14 August 2025, RBC moved its objective from 1,150p and maintained an “outperform” view, implying roughly an 11% upside from IG’s previous close. The revision follows a wave of upgrades and re‑ratings from other investment houses over the summer.

The broader broker consensus has turned unmistakably positive. Deutsche Bank raised its target to 1,350p on 8 August 2025 and kept a buy rating after pointing to improving momentum across the business; Shore Capital reiterated a 1,200p buy on 24 July 2025; Canaccord upgraded its objective from 782p to 1,099p at the end of May; and Berenberg remains the most bullish with a 2,600p target set in late May. MarketBeat’s aggregation of analyst data puts the consensus target near 1,504.8p and records an overall “Buy” consensus among covering analysts.

Market moves and technicals have reflected that shift in sentiment. On the day RBC’s note was reported, IG traded up to 1,149p — a one‑year high in the snapshots cited — on lighter-than‑average volume, with the stock’s 50‑ and 200‑day moving averages sitting around the mid‑1,000p area. Publicly available price and volume summaries also show a relatively low beta and a valuation that, by some measures, looks undemanding versus peers.

Investors’ optimism is rooted in a set of strong full‑year numbers IG itself disclosed on 24 July 2025. The company’s regulatory news service filing for the year ended 31 May 2025 showed total revenue of £1,075.9m, net trading revenue of £942.8m and adjusted profit before tax of £535.8m. Adjusted basic earnings per share were reported at 114.1p (statutory basic EPS 106.3p). The RNS also confirmed a dividend and a proposed £125m buyback while noting active customer growth helped by the recent Freetrade acquisition — facts that brokers cite as central to their upgrades.

Analysts point to a combination of higher trading revenues, margin expansion and cost efficiencies as the operational drivers behind the revisions. Deutsche Bank’s note (reported by the financial press) emphasised improved trading revenues and profit before tax momentum; Canaccord signalled better trading conditions and a more constructive outlook when it raised its objective; and Shore Capital’s reiteration followed the strong headline results in July. At the same time, Berenberg’s markedly higher target stands out as an outlier within the broker community, underscoring that valuation views remain varied.

That positive picture comes with caveats. IG’s listed multiples — a relatively low trailing P/E and a negative PEG quoted in broker summaries — can look attractive only so long as volumes and volatility persist in clients’ favour. The group’s balance sheet metrics and a reported debt‑to‑equity reading in recent summaries should be read alongside integration risks stemming from the Freetrade deal and any regulatory or market structure changes that could affect retail trading volumes. Investors should also note that some of the coverage summarising broker views is delivered via financial alert services, which aggregate research across houses and may differ in emphasis from full published reports.

For now, the market appears to be rewarding IG’s results and corporate actions: a mix of buybacks, dividend distribution and an enlarged customer base has persuaded several brokers to lift targets and maintain buy ratings. Yet the range of targets — from around 1,099p up to 2,600p — serves as a reminder that while consensus is positive, judgement about upside and risk varies materially across analysts. Prospective investors will want to weigh the company’s published FY25 results, broker rationale and their own views on trading volumes and regulatory risk before positioning.

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Source: Noah Wire Services