At first look, IG Group has all the attributes of a takeover target. The shares trade at bargain basement levels; the spread-betting group is highly cash generative and has net cash on the balance sheet, as the research outfit Canaccord Quest has noted. All of which are far more desirable now the cost of capital is more burdensome.
Investors don’t need to bet on a bid to force a re-rating in the shares. IG Group thrives on market volatility, which lures investors to speculate on movements in asset prices. Ructions in the market over the past month bode well for a stronger end to the year for the FTSE 250 group.
Calmer markets caused third-quarter revenue to come in weaker than some analysts’ expectations, down
