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Raymond James Downgrades Nasdaq On Valuation

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Raymond James’ Patrick O'Shaughnessy downgraded Nasdaq Inc (NASDAQ: NDAQ) from Strong Buy to Outperform, while raising the price target from $67 to $70, following the company’s share price gains and multiple expansion over the past year.

Outperformance Of Shares

Nasdaq’s shares are currently trading at a modest premium to the market, boosted by improving investor sentiments around the “growth prospects and stability of Nasdaq’s non-transaction revenue sources,” analyst Patrick O'Shaughnessy said. Shares are up 28 percent over the past year, versus a gain of 9 percent for CBOE, a 1 percent increase for ICE, and a 3 percent decline for CME Group.

“We continue to expect growth in non-transaction revenues and disciplined expense management to provide stability and drive long-term EPS improvement,” O'Shaughnessy wrote.

Take On Recent Acquisitions

Since December 2015, Nasdaq has bought 4 companies for a total of $1.5 billion. While terming Nasdaq’s latest acquisitions as “solid strategic moves,” the analyst mentioned that they are unlikely to have a dramatic impact on the company’s earnings profile, although they should drive “some EPS upside.”

Latest Ratings for NDAQ

DateFirmActionFromTo
Apr 2021OppenheimerMaintainsOutperform
Apr 2021BarclaysMaintainsOverweight
Apr 2021RosenblattMaintainsNeutral

View More Analyst Ratings for NDAQ
View the Latest Analyst Ratings

 

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