Nasdaq Inc (NASDAQ:NDAQ) stock gained after B of A Securities analyst Craig Siegenthaler double-upgraded the stock from Underperform to Buy and raised its price target from $53 to $90.

Siegenthaler applied a 25x multiple on his 2026 EPS to derive the price target. The multiple implies a slight discount to Nasdaq’s aspirational software and information services peer group but is a premium to its current valuation.

The analyst noted an upward rerating would stem from a pause in dealmaking, accelerated deleveraging, business streamlining, and an acceleration in revenue growth.

As per Siegenthaler, improving macroeconomic conditions in conjunction with long backlogs should make for an IPO rebound in 2025.

Specifically, equity market valuations have recovered to 2021 levels while volatility should normalize lower after the U.S. presidential election and Fed rate cuts, the analyst said.

At the same time, he added that private equity sponsors have a long pipeline of aging portfolio companies, and limited partners are demanding liquidity.

He said that a comeback in IPOs would directly benefit Nasdaq’s listings segment and have positive second-derivative impacts on its trading, corporate services, and financial data businesses.

Price Action: NDAQ stock traded higher by 2.22% at $72.97 at the last check on Wednesday.

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