Barclays Maintains an 'Overweight' on NYSE Euronext (NYX); Management Meeting Takeaways

Barclays maintains an 'Overweight' on NYSE Euronext (NYSE: NYX), PT $41.

Barclays analyst says, "Yesterday, we met with NYX's Duncan Niederauer (CEO), Larry Leibowitz (COO), Michael Geltzeiler (CFO), and Stephen Davidson (IR). We walked away from the meeting with a clearer picture of NYX's logic behind the recently announced special dividend, potential concessions the company would be willing to make as NYX and Deutsche Boerse AG (DB1) work through antitrust concerns, more clarity on the potential benefits of increasing the company's stake in LCH, and an update on the progress NYX is making with DB1 as the companies prepare to integrate operations."

"The tone of the meeting was positive overall and we believe NYX continues to make metered progress with its merger process. Importantly, we believe management teams of both companies are refocused on completing their merger and working diligently to get as much of a running start on integration as possible (within the constraints of regulatory allowances) ahead of the deal closing...Despite these risks, we remain positive on the shares given current valuation, with NYX shares trading at just 13x our 2011 estimate. This is relatively in line with the midpoint that NASDAQ (Nasdaq: NDAQ) (as a cash equities proxy) and CME Group (NYSE: CME)/ IntercontinentalExchange (NYSE: ICE) (as a derivatives proxy) trade at, though we believe exchanges have succumbed to soured investor sentiment about declining activity levels across the capital markets."

For more ratings news on NYSE Euronext click here and for the rating history of NYSE Euronext click here.

Shares of NYSE Euronext closed at $35.27 yesterday.

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