Broker snap: Singer makes upgrades at IG

26th Aug 2011 12:35

Following IG Group's record client activity reported in its recent trading update (22 August), Singer Capital Markets has upped its earnings per share (EPS) forecasts and reiterated its buy recommendation for the spread-betting firm.Despite it being holiday season in the majority of the group's markets, IG expects revenues to exceed £94m in the three months ending 31 August, up from £79.1m in the first quarter of last year. "Together with a low bad debt charge and no change in overall cost assumptions, this drives a 6% upgrade to full year EPS based on first quarter trading alone," the broker said. While the broker's estimates for the subsequent quarters are based on more 'normalised' activity, analysts note that if the current volatility continues, then additional upgrades could be seen.The target price is left at 540p.Shares were 0.28% lower at 426.40p by 12:31 on Friday.BC