Market Overview

Deutsche Bank: Owning Nasdaq OMX Group, Inc. Could Reward Investors In The Long-Term


On Thursday, Brian Bedell of Deutsche Bank released a year-end strategy report on Brokers, Asset Managers and Exchanges. The analyst favors owning shares of Nasdaq OMX Group, Inc. (NASDAQ: NDAQ) along with InterContinental Exchange (NYSE: ICE).

The two exchanges offer investors "earnings per share growth/valuation stories though still benefiting from higher volumes."

"We are constructive on Nasdaq's progress over many years in creating a lower-risk, high-recurring revenue business model with solid execution, especially in cost management," Bedell wrote. The analyst said that the exchange continues to gain traction among investors following an improvement in the company's price to earnings ratio.

Bedell favors owning shares of Nasdaq OMX following a recent pullback in the company's valuation versus its peers. Additionally, the analyst argues that a slow intermediate-term revenue growth trajectory is priced into the valuation. Finally, a potential acquisitive growth strategy may restrain capital return ratio below some of its peers, but the company could benefit from “attractive tangential revenue” as well as expense synergy opportunities.

Bottom line, Bedell believes that in the longer term, management's solid execution history should reward investors with a higher valuation.

Shares were upgraded to Buy from Hold with a price target raised to $49 from a previous $46.

Latest Ratings for NDAQ

Jul 2020Argus ResearchDowngradesBuyHold
Jul 2020Raymond JamesDowngradesOutperformMarket Perform
Jul 2020CitigroupMaintainsNeutral

View More Analyst Ratings for NDAQ
View the Latest Analyst Ratings


Related Articles (NDAQ)

View Comments and Join the Discussion!

Posted-In: Brian Bedell Exchanges intercontinental exchangeAnalyst Color News Upgrades Price Target Analyst Ratings

Latest Ratings

IIPRRoth CapitalMaintains150.0
CRDFMaxim GroupMaintains14.0
KGCTD SecuritiesMaintains13.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at