RBC says selloff on IG Group's Underdog deal was an overreaction

RBC Capital Markets has backed IG Group Holdings Plc (LSE:IGG) after the sharp fall that greeted last month's acquisition of Underdog, arguing the market has fixated on regulatory risk while ignoring what underpins the deal. The broker keeps its outperform rating and 1,850p price target, implying 39% upside from 1,371p.