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Ticonderoga Securities Initiates Coverage on Nasdaq OMX Group (NDAQ) with a Neutral; Saying on Sidelines

February 24, 2010 9:43 AM EST
NDAQ Hot Sheet
Rating Summary:
    5 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Ticonderoga Securities initiates coverage on Nasdaq OMX Group Inc (NASDAQ: NDAQ) with a Neutral rating.

Ticonderoga analyst says, "NDAQ has numerous initiatives to drive top-line growth in areas such as European cash equities and derivatives, and interest rate swaps. Some of these opportunities appear more tangible (European derivatives) than others (interest rate swaps), but we have already factored them in. Others (UK power market) are difficult to measure. Given the current opportunity set, NDAQ’s business mix, and trends in cash equities (with volumes on pace to decline 15%+ YOY in 1Q10), we believe upside potential to our current estimates (revenue growth of 5%/6% in 2010/2011) is limited...Growing competition- In addition to the usual pressures in US cash equities (only 10% of revenues), we are starting to see signs of potential competition in a number of other areas, including equity options (9% of rev.), access services (10%), technology (12%), and listings (22%)...Our 2010/2011 EPS estimates are established at $2.06/$2.26."

To see all the upgrades/downgrades on shares of NDAQ, visit our Analyst Ratings page.

The NASDAQ OMX Group, Inc. is a global exchange group that delivers trading, exchange technology, securities listing, and public company services across six continents.

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