UPDATE: Citigroup Raises Target on IntercontinentalExchange to $145
Citigroup reiterates its Neutral rating on IntercontinentalExchange (NYSE: ICE) and raises its price target by $15 to $145 on a good quarter and 2013 estimates.
Citigroup notes, "Good quarter, strong OTC ADC and guidance, drove the shares up +6% today. While consolidated ADV was down -6% y/y in January, we would expect some stabilization as futures open interest closed January up 11% from December and Brent and Gasoil volumes remain strong. On the M&A front, mgt does not view the NYX-DB1 ruling as an impediment to future exchange deals and believes M&A is likely to result from increased industry regulatory requirements. As we noted in our preview, Citi commodities research suggests several geopolitical events that could drive volatility in the energy markets in 2012, supporting volumes at ICE near term. While much of the good news is already in the stock, we do have a near-term upward bias for the shares. Target up to $145 on 16x 2013 estimate of $9.05."
ICE closed at $130.50 a share on Wednesday.
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