What happens to stocks if AI loses momentum?
On Wednesday, UBS analysts downgraded IG Group Holdings stock from Buy to Neutral. The decision was accompanied by a revised price target, increasing to £12.00 from £11.50. The downgrade reflects concerns about the company’s future growth prospects amid current market conditions.
UBS analysts noted that IG Group has recently benefited from high market volatility and increased client trading activity. These factors are expected to contribute to strong financial results for fiscal year 2025. However, the analysts expressed concerns about the company’s ability to maintain this growth trajectory in the coming years.
IG Group is set to report its fiscal year 2025 results on July 24. UBS estimates suggest that the company’s profit before tax will be 2% above the Visible Alpha consensus. The analysts anticipate stability in active client numbers and growth in revenue per client, supported by favorable market conditions.
Despite these positive expectations for the current fiscal year, UBS analysts highlighted potential challenges for IG Group in fiscal year 2026. They cited the lack of sustainable cyclical support and anticipated USD weakness as factors that could hinder growth. Additionally, the company is expected to increase investments in growth opportunities, which may impact its financial performance.
Overall, the UBS report suggests that while IG Group is poised for a strong fiscal year 2025, the outlook for future growth is less certain, prompting the downgrade to a Neutral rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.