UPDATE: Stifel Nicolaus Maintains Buy, Reduces PT to $42 on MarketAxess Holdings on Weaker ADV
Stifel Nicolaus reiterates its Buy rating on MarketAxess Holdings (NASDAQ: MKTX) but reduces its price target from $42 to $40.
Stifel Nicolaus says, "We are reducing EPS estimates on weaker than expected 2Q12-to-date ADV following MKTX's May ADV report. May trading volume on the platform increased 10% y/y to $48.7B ($2.3B ADV) as TRACE U.S. High Grade volume increased m/m but MKTX share declined by 70 bps. However, we remain optimistic that trends will improve in 2H12 with continued strength in corporate bond flows and the increasing potential for clarity on SEF rules in 4Q12. Our revised target price of $40 is based on 22x our 2013 EPS estimate."
MKTX closed at $30.32 on Monday.
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