UPDATE: Stifel Nicolaus Upgrades NYSE Euronext to Buy; Bad News Mostly Priced In
Stifel Nicolaus raised its rating on NYSE: Euronext (NYSE: NYX) from Hold to Buy and established a $27 price target.
Stifel Nicolaus commented, "NYX shares closed Friday at a 52-week low of $22.95, trading at 12.8x our FY12 EPS estimate and breaching our downside target of $23. The current valuation represents a 7% premium to our target P/E of 12.0x on next year's estimated EPS, which is also below the 5-yr average NTM P/E of 12.5x. At current levels we believe NYX shares have discounted plenty of bad news, including trough volumes, a weakened IT spending environment, and constraints on capital return. While these issues could continue to weigh on shares in the near term, we believe the stock is washed out and offers solid upside potential with limited downside risk."
NYSE Euronext closed at $22.95 on Friday.
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