UBS upgraded IG Group to Buy from Neutral, raising its price target to 1,600 pence from 1,250 pence. The investment bank expects the online trading platform to benefit from market volatility and increased trading activity, supported by revenue retention initiatives and new product launches. IG Group has demonstrated positive momentum in active customers and funded accounts, according to UBS.

Year-over-year growth in funded customers improved from 6% in the first quarter of fiscal 2025 to 10% in the third quarter. UBS forecasts 12% annual earnings per share growth from calendar year 2025 to 2030, driven by 7% annual trading revenue growth. The firm highlighted IG Group's adoption of artificial intelligence tools, including an AI-driven customer support chatbot that resolves more than 60% of submitted queries without human intervention.

The company has also implemented Adclear for AI financial promotions review and Alloy's AI-driven KYC/AML system to automate onboarding and fraud checks. UBS expects IG Group to continue share buybacks of approximately 5% to 6% annually, supported by a strong regulatory capital position and cash flow generation. The firm made minimal changes to its calendar year 2026 to 2028 forecasts but raised its price target by reducing the cost of capital in its discounted cash flow valuation to reflect reduced execution risk.