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
13,913.23
09:54 25/04/24
FTSE 250
19,725.34
09:55 25/04/24
FTSE 350
4,447.38
09:55 25/04/24
FTSE All-Share
4,400.76
09:55 25/04/24
TP Icap Group
202.00p
09:39 25/04/24
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