Compass Point Starts IntercontinentalExchange (ICE) at Buy; Impressive Assets and Growth

January 9, 2013 7:03 AM EST Send to a Friend
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Price: $203.14 --0%

Rating Summary:
    13 Buy, 4 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 13 | New: 9
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Compass Point initiates coverage on IntercontinentalExchange (NYSE: ICE) with a Buy. PT $150.00.

The firm comments, "The company's collection of assets and track record of growth is impressive. Over the 2007-2011 period compound annual growth was 23% on the top line, 20% in terms of net profits attributable to common shareholders, and 25% in terms of operating cash flow. Future growth prospects remain bright. Share gains in Brent have been substantial. The NYSE Euronext acquisition makes ICE the world's #3 global derivatives exchange. The successful CDS venture demonstrates management can execute. We forecast FY'13 EPS of $9.65 assuming the NYX transaction closes at the start of 3Q'13 implying total earnings growth of 27% on the year of which 13% is attributable to NYX. We consider the shares attractively priced trading at ~13x our estimate of FY'13 EPS and at ~12x current enterprise value adjusted for the NYX acquisition relative to our estimate of FY'13 free cash flow."

For an analyst ratings summary and ratings history on IntercontinentalExchange click here. For more ratings news on IntercontinentalExchange click here.

Shares of IntercontinentalExchange closed at $127.18 yesterday.


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