UPDATE: Credit Suisse Downgrades MarketAxess to Underperform on Lack of Growth Visibility

Credit Suisse reduced its rating on MarketAxess MKTX from Neutral to Underperform with a reiterated $28 price target. Credit Suisse said, "The Next Leg of Growth Is Not Easy for Us to See. Management has executed well exiting the crisis,weathering the losses of major customers, dealer de-leveraging and stagnant industry volumes-we primarily attribute the outsized revenue/EPS growth to successful dealer expansion (this is where we primarily missed the call) and improved expense/capital mgmt discipline. With that said, we believe the next stage of growth will be more muted and is already embedded in current expectations-dealer penetration is largely complete, structural barriers to increased e-trading persist (number of securities, buy-and-hold mentality) and new product payoff remains a show-me story to us." MarketAxess closed at $32.35 on Tuesday.