IG Group's Prediction-Market Success Dependent on Regulation, Market Share Gains
Dow Jones
Aug 19
1509 GMT - IG Group's acquisition of U.S sports prediction market Underdog Sports has significant upside potential, but its success is dependent on regulatory and competitive wins, UBS analysts write. London-listed IG agreed to acquire New York-based Underdog in July. As well as a positive regulatory environment for sports prediction markets, Underdog needs to win greater market share for the takeover to add to IG's earnings outlook, the analysts say. The stock's sharp fall in recent weeks is partly a result of investor concern IG is pursuing the deal because its core growth is stalling, the analysts say. UBS cuts its price target for IG stock from 22.00 pounds to 17.00 pounds. Shares fall 4.4% to 13.24 pounds.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.