ANALYST VIEWS:?WHAT IS THE OUTLOOK FOR ICAP’S BUSINESS?
VIVEK RAJA | PANMURE GORDON
“The earnings guidance was in line with expectations, but it is Icap’s cautious tone which has spooked the market. For volumes to have slowed ‘significantly’ across the business in June is worrying following strong market activity in May, and highlights a lack of visibility and outlook uncertainty.”
NITIN ARORA | EXECUTION NOBLE
“The key driver for Icap’s business is volatility, which has been hit recently in all asset classes and is not likely to improve in the near future. However, Icap is still a solid business and should deliver in line with last year, especially given that the drag of the cash equities business has now been eliminated.”
JAMES HAMILTON | NUMIS
“We believe that earnings per share growth will be strong through next year, driven by strong growth in volumes from the prospect of economic recovery and increased interest rates around the world. A higher interest rate environment will stimulate trade directly in interest rates, bonds and FX, impacting most of Icap’s product lines.”