Deutsche Bank raises IG Group stock price target to GBP13.50 on strong FY25

Published 08/08/2025, 12:12
Deutsche Bank raises IG Group stock price target to GBP13.50 on strong FY25

Investing.com - Deutsche Bank (ETR:DBKGn) has raised its price target on IG Group Holdings (LON:IGG) to GBP13.50 from GBP12.25 while maintaining a Buy rating following the company’s strong fiscal year 2025 performance. The stock, currently trading near its 52-week high with a market capitalization of $5.3 billion, appears fairly valued according to InvestingPro analysis.

IG Group delivered 9% revenue growth in FY25, with 8% coming organically, driven primarily by a 12% increase in trading revenue amid supportive market conditions, partially offset by a 7% decline in net interest income due to lower interest rates. The company’s robust performance is reflected in its attractive P/E ratio of 10.7x and impressive return on equity of 20%.

The company reported profit before tax of £536 million, representing a 17% year-over-year increase that exceeded consensus forecasts by 2.5%, while its PBT margin improved 3.6 percentage points to 49.8%, supported by further cost efficiencies as operating expenses rose just 2%, or declined 7% in terms of organic fixed cost to serve per customer. InvestingPro data reveals the company maintains a strong financial health score, with 8 additional exclusive insights available to subscribers.

Management disclosed encouraging key performance indicators, with active customers growing 5% organically (excluding Freetrade) and first-time traders increasing 19%, marking the first growth in these metrics in four years.

Exchange Traded Derivatives, particularly through Tastytrade, continued to drive growth with active customers increasing 12% and first-time traders rising 37%, with the US and UK divisions serving as the key contributors to this performance.

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