UPDATE: Compass Point Research & Trading Initiates Coverage on NASDAQ OMX Group with Neutral Rating, $28 PT

In a report published Wednesday, Compass Point Research & Trading initiated coverage on NASDAQ OMX Group NDAQ with a Neutral rating and $28.00 price target. Compass Point noted, “We are initiating coverage of Nasdaq OMX with a Neutral rating and $28 price target. Our bias is to be more optimistic. The business produces sufficient free cash flow to self fund organic initiatives and small acquisitions. Management has a track record of returning excess capital to shareholders through buybacks and dividends. Improvement in volume trends and progress with ancillary growth opportunities provides the potential for higher earnings. We see scarcity value in the US listings business following the NYX-ICE merger. However, the current operating environment is challenging and the shares are up 17% in the past 6 months versus the DJIA up 4% supporting our initial caution.” NASDAQ OMX Group closed on Tuesday at $26.10.