Is this soaring penny share set for an explosive 2026?

A penny share can be a volatile thing, and IG Design Group (LSE: IGR) definitely fits that mould. But it’s been storming up the charts in 2026, rising 64% since the start of the year. It still, though, has some way to go to reverse its five-year decline.

IG Design shares stand at 84p at the time of writing (2 June). And its market cap is edging above £80m. So, it wouldn’t take much more growth at the 2026 pace to see it pull out of penny share territory.

What does it do?

IG does gift and celebration packaging. And that’s really not too essential in times of economic squeeze. Additionally, the company had sizeable interests in the US market though DG Americas. And that segment was struggling even before escalating tariffs and global trade wars kicked off.

But that business was sold off in 2025. And with first-half results for fiscal 2026 released in September, interim executive chair Stewart Gilliland was talking of “a defined pathway to further improvement in profitability and long-term value creation“.

The company issued full-year guidance for revenue of $270m-$280m, with a 3%-4% adjusted operating margin. With a strong order book covering 96% of full-year forecast sales, things looked brighter.

What’s the latest?

By the time of the most recent trading update, in April 2026, those first signs of brightness appeared decidedly sunnier…

The Group expects to report FY 2026 revenues of c$292 million and adjusted operating profit of c$12.8 million, representing an adjusted operating margin of 4.4%, and delivering adjusted profit before tax of c$11.5 million.

— Trading update ahead of FY 2026 results, 30 April

If that’s not enough to boost investor optimism, the company also told us it had “significantly exceeded expectations with year-end net cash of c$72 million“. It added: “The group has a strong balance sheet position and an update on the future capital allocation policy will be provided in our full-year results.“

So that’s something investors should definitely watch out for when we have the results. They’re due on 16 June, so we won’t have long to wait.

What should investors do?

So far, this looks like the kind of turnaround we really need to see. And it does appear to be going faster than anyone expected at this time last year. And that includes City analysts.

Following April’s trading update, investment bank Cannacord Genuity lifted its price target on IG Design shares to 150p, from the previous 130p. That would mean a whopping 79% increase from now. And even the old target would have had sights set on a 55% gain.

It definitely won’t remain a penny share if that comes off. But we should be aware that very few brokers offer forecasts for this company. And on tiny stocks, they can sometimes change dramatically. And consumer spending on discretionary items can be fickle.

Buy while it’s still cheap?

I’m at the stage where I’m not looking for higher-risk small-cap investments myself. But for those who favour penny shares, I think IG Design could be one of the best to consider right now.

Should you invest £5,000 in Ig Design Group Plc right now?

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Alan Oscroft does not hold any positions in the companies mentioned.