UPDATE: Citigroup Cuts PT to $27 on NYSE Euronext, Tough Tech Environment

Citigroup lowers its price target from $30 to $27 on Neutral-rated NYSE Euronext

as Q1 reveals a tough volume environment for Tech businesses. Citigroup comments, "NYX has been guiding to $1B in tech revenues with 25%+ margins by 2015. While Q1 is seasonally light, tech revs were down ~5% q/q and represented the first material decline in tech/software rev's over the past year and a half. Mgt cited a challenging fin services environment which has delayed decision making on new orders of software and suppressed demand. In addition, lower volatility has impacted co-location and connectivity orders and the weakness will likely persist into Q2. Note that ~84% of tech rev's are recurring in nature, with the remaining 16% needing to be replenished. With the current run rate tech rev's at $484M, we believe NYX would likely need a decent sized acquisition to bridge the gap to their $1B target." NYX closed at $25.66 on Monday.