Improved Pricing Leads Barclays To Raise Its Q2 EPS Estimate For Nasdaq, Inc

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Barclays raised its second-quarter EPS estimate for
Nasdaq IncNDAQ
to $0.90 from $0.89. In its report published Tuesday, the analysts mentioned the new pricing data provided by the company as the reason for higher estimates.

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The analysts provided several key areas that will be closely monitored during second-quarter earnings, such as:

  • The company's non-transaction businesses' performance after sluggish start to the year. "Earlier in the year, management spoke to a potentially better 2H16 environment for businesses like Corporate Solutions, and we will look to hear what management is seeing from customers to reaffirm that guidance," wrote Barclays.
  • Management commentary on the overall competitive dynamics on trading side of the business given new entrants and continued regulatory debates.
  • The progress in integration efforts. "Nasdaq was very acquisitive to start the year, and we will look to see if the company remains comfortable with its previous accretion guidance for ISE, Chi-X, Marketwired and Boardvantage," the analysts added.

Barclays currently has an Overweight rating on the company with $73 price target.

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