By Michele Maatouk
Date: Friday 14 Aug 2026
LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets reiterated its 'outperform' rating on IG Group on Friday as it argued the stock was oversold on news of the acquisition of US prediction markets operator Underdog.
The bank, which maintained its 1,850p price target, noted that IG's value has fallen by more than the deal consideration, with the shares down 22% since the announcement and market cap reduced by around £1.2bn, suggesting there is nothing in the market cap for the Underdog business.
"Whilst the deal increases leverage, pauses buybacks and introduces near-term regulatory uncertainty, we believe several positives have been overlooked: diversification away from market volatility, exposure to high-growth prediction markets and improved long-term listing optionality," RBC said.
"Whilst the range of EPS outcomes has widened in both directions across our forecast period, in our view the market has priced in only the downside. With IGG now trading on 10x we see a clear valuation case and expect the shares to benefit from the broadening in appeal that the deal creates."
At 0945 BST, the shares were up 1.6% at 1,353p.
| Currency | UK Pounds |
| Price | 1,302.00p |
| Change Today | -16.00p |
| 52 Week High | 1,938.00p |
| 52 Week Low | 1,025.00p |
| Volume | 827,829 |
| Shares Issued | 332.34m |
| Market Cap | £4,327.01m |