UPDATE: ISI Group Raises PT to $31 on NASDAQ OMX on Private Equity Valuation Catalyst
ISI Group maintained NASDAQ OMX (NASDAQ: NDAQ) with a Neutral rating and raised the price target from $29.00 to $31.00.
ISI Group noted, "We retain our fundamental view on NDAQ, which is constructive on the growth initiatives and long-term business mix transformation as well as consistent FCF generation & deployment of excess capital. However, we continue to see slower revenue growth vs. peers on less leverage to trading volumes & a still sluggish recurring revenue growth outlook & despite excellent cost control, op margin leverage will be difficult with business mix toward lower-margin businesses. Thus, we see shares fairly valued on fundamentals, and acquisition catalyst remains uncertain, particularly if price remains an obstacle."
NASDAQ OMX closed at $30.38 on Monday.
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