MARKET TALK: Citigroup Initiates Coverage Of IG Group At Hold

29th Jun 2010 07:17

0617 GMT [Dow Jones] Citigroup initiates coverage of IG Group (IGG.LN) at hold with a 485p price target. Says it is a market-leading business with a strong growth track record. However, says that after a strong 4Q '10 update, its shares are up 17% month-on-month, trading on 13.8x FY '10E and 13x FY '11E, respectively. Also notes that the increase in the UK capital gains tax rate could result in more customers turning to spread betting versus CFD trading. Says this could negatively impact revenue growth given the revenue per client. Shares closed on Monday at 435.6p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 29, 2010 02:17 ET (06:17 GMT)