TP ICAP rallies as Barclays initiates coverage at 'overweight'
Barclays initiated coverage of TP ICAP shares at ‘overweight’ on Thursday, with a 440p price target, as it argued a shifting revenue mix will support earnings growth.
Financial Services
16,492.39
15:44 15/11/24
-0.24%
-40.16
FTSE 250
20,508.75
15:45 15/11/24
n/a
n/a
FTSE 350
4,453.56
15:45 15/11/24
n/a
n/a
FTSE All-Share
4,411.85
15:45 15/11/24
n/a
n/a
TP Icap Group
258.50p
15:45 15/11/24
0.19%
0.50p
It said the interdealer broker - the "market leader in OTC derivatives broking" - was well positioned to capitalise on the structural growth of OTC derivatives and the growing importance of proprietary data.
Barclays expects growth in all divisions, with a FY19-22 estimated revenue compound annual growth rate of 13% for the higher-margin data & analytics segment, versus 1.5% for the global broking division. This will underpin the group's operating margin expansion from 15% in FY19 to 17% by 2022, it said.
At 1320 BST, the shares were up 5.8% at 357.53p