Intercontinental Exchange: Structural Shifts In Energy, Improving Growth In Mortgage

Meeting with Intercontinental Exchange Inc's ICE top management indicated that the company is poised for durable earnings growth of more than 10%, "with healthy momentum” across its three business segments, according to Goldman Sachs.

The Intercontinental Exchange Analyst: Analyst Alexander Blostein maintained a Buy rating.

The Intercontinental Exchange Thesis: The company is poised to benefit from structural shifts in the energy segment and improving growth in mortgage, Blostein said in the note.

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Structural shifts, including dominance of Brent, gains in WTI, acceleration of LNG in Asia and the Trump administration's push for more U.S. energy exports, should continue to boost Intercontinental Exchange's trading businesses, the analyst stated.

The mortgage business should generate improving revenue growth trends, "as integration benefits and cross-selling efforts begin to outrun industry headwinds, with recent industry consolidation creating further revenue opportunities," he wrote.

Fixed Income Data and Analytics are steady growth contributors, "with room to exceed 5%," Blostein added.

ICE Price Action: Shares of Intercontinental Exchange had risen by 0.85% to $177.58 at the time of publication on Tuesday.

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