Plus500 upgraded to buy by Cavendish as shares rise 1.2%

London‑listed fintech group Plus500 received a fresh “buy” rating from the Cavendish research boutique on Monday, after the broker lifted its recommendation from “hold”. The analyst house said the stock has been left undervalued by a roughly 25 % slide since the company’s July trading update. Cavendish trimmed its target price to 4,490p from 4,685p, still implying about a 21 % upside from the current level of 3,714p. The upgrade coincided with a 1.2 % rise in the shares, bringing the price to 3,836p.

Cavendish’s case rests on a mix of valuation and growth arguments. At roughly 12.6 times its estimated 2026 earnings, the broker argues the market is not fully rewarding Plus500’s push beyond its traditional over‑the‑counter (OTC) platform. The analyst highlighted the US arm as a “bright spot”, noting non‑OTC revenue rose roughly 30 % year‑on‑year to $70 million. The broker also stressed that the recent weakness came despite a strong first half of the year and management’s commitment to stick to full‑year guidance.

Media additions

Market reaction and broader UK backdrop

Proactive Investors noted that the UK market opened in the green, with the mining sector reversing losses seen the week before. The publication also pointed to a “cautiously upbeat” mood among investors, even as they keep one eye on the US Federal Reserve and another on a heavy slate of US retail earnings.

In the US, futures were mixed: Dow futures slipped 0.2 %, the S&P 500 edged up 0.1 % after a third straight weekly gain, and the Nasdaq‑100 added 0.5 %. Both sources observed that the lighter economic calendar this week puts America’s big‑box retailers – Walmart, Target, Lowe’s and Home Depot – in the spotlight as they report earnings that will shed light on consumer‑spending trends ahead of the back‑to‑school period.

Rate‑move expectations and oil price pressure

Traders have trimmed the odds of a September rate hike at the Jackson Hole gathering to less than a third, according to both outlets. Proactive Investors added that soft US retail sales, down 0.6 % in July, have further reduced the likelihood of a September move to roughly one in four, down from about 50 % a week earlier.

Oil remained a nagging worry, with Brent crude ticking up to $89 a barrel as the Middle East conflict continued to rattle markets. Bond markets showed modest nervousness, with 10‑year and 30‑year US Treasury yields each rising five basis points on Friday.

Both sources flagged that Wednesday’s Federal Reserve minutes could provide fresh clues on the central bank’s future policy path, a focal point for investors watching the interplay between US monetary stance and UK equity performance.

Corporate spill‑over: AstraZeneca and other headlines

On the corporate side, AstraZeneca’s shares rose 0.8 % by mid‑morning despite the company halting a late‑stage lung‑cancer trial. The firm also announced encouraging data on its Tagrisso therapy, which helped soften the market reaction to the setback. Proactive Investors detailed that AstraZeneca’s Volrustomig drug, combined with chemotherapy, was unlikely to improve survival, prompting the phase‑three trial stop, but that its Enhertu treatment showed a meaningful delay in disease progression and would advance to phase three.

The broader UK news flow was thin. Apart from the mining rally, the only other notable update came from the housing market. Data showed sellers in Britain’s most expensive borough cutting average asking prices by nearly £100,000 in a month, while nationwide asking prices fell 2 % in August – the steepest monthly drop in eight years. London saw a sharper 4.4 % fall, and buy‑to‑let investors made up 14.1 % of purchases in July, often submitting offers at least 10 % below asking.

International cues and technology momentum

Regional technology stocks led Asian markets, with Hong Kong’s Hang Seng climbing 1.8 % and Japan’s Nikkei pushing further into record territory despite weaker‑than‑expected growth figures. The tech‑led rally in Asia fed into the optimism that helped the FTSE 100 open higher, according to both the Yahoo Finance and Proactive Investors feeds.

The article also highlighted that oil concerns were compounded by tanker traffic disruptions through the Strait of Hormuz and remarks from US officials warning of pricier petrol, adding another layer of uncertainty to the global commodities backdrop.

What to watch next

• Federal Reserve minutes on Wednesday, which may clarify the central bank’s outlook on rate hikes.
• US retail earnings from Walmart, Target, Lowe’s and Home Depot, due later in the week.
• Further movements in Plus500’s share price as investors digest the Cavendish upgrade and the firm’s US‑arm growth.
• Potential shifts in Jackson Hole commentary that could sway expectations for the September Fed move.
• Continued performance of UK mining and technology stocks, which have been key drivers of the FTSE 100’s early‑day gains.

With the Cavendish target still implying a double‑digit upside and the broader market balancing Fed‑rate uncertainty against solid earnings from both UK and US constituents, Plus500’s next few trading sessions will likely test whether the “bright spot” narrative can translate into sustained share‑price momentum.