The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Icap mullered after research mix up

It’s logical that brokers such as Icap and Tullett Prebon should face being downgraded by the analysts who cover them. After all, they face many challenges. A degree of consolidation is taking place in their client base, let alone in some of the more lucrative markets they operate in. That said, I would still have thought that their diversification of offerings makes them better bets than certain regulated exchanges, which look to be veritable one-track ponies in comparison.

This morning, Morgan Stanley downgraded its ratings on Icap to underweight and slashed its price target to 245 pence from 710p; Tullett fared worse, being double downgraded to underweight from overweight and having its price target cut from 500p to 195p. It’s hardly the stuff to please either company’s management. But for Icap, things got worse when Reuters mixed up the price targets and reported that Icap’s was now 195p.

I understand that the news wire, which prides itself on the accuracy of its reporting, is not entirely at fault. But perhaps showing the power of the pen, Icap’s shares fell out of bed, dropping 25% at one stage as they moved rapidly towards the wrongly reported target.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree