Plus500 Shares Rise: Is the Stock Benefiting From Market Volatility?

Plus500 (LON: PLUS) shares have gained 2.5% over the past week, with analysts at Cavendish suggesting the stock is well-positioned to benefit from current market conditions.

In a new research note, the firm argues that elevated volatility is likely supporting both customer activity levels and active client numbers in the company’s core contracts-for-difference business.

According to Cavendish, “recent conditions will have supported Plus500’s underlying performance in the first three months of 2026,” helped in part by reactivations and lower churn.

The analysts say this backdrop implies the group “could prove to be a beneficiary of any prolonged period of uncertainty, especially within commodity markets.”

The firm also highlights momentum in the non-OTC business, pointing to growth in prediction markets, particularly in the United States. While details of the company’s partnership with FanDuel remain limited, Cavendish notes strong user growth and expects the segment to become “a notable contributor” over time.

Reflecting stronger-than-expected early-year activity, Cavendish has upgraded its forecasts, raising FY26 revenue expectations by 3.8% and EBITDA by 6%. The analysts also anticipate a further $286 million in shareholder returns, consistent with the company’s payout policy.

Despite recent share outperformance, Cavendish reiterates its Buy rating and lifts its target price to 4,665p from 4,345p, while noting that “further upgrades will be required to support continued outperformance.”