Nasdaq OMX Group Inc. (NDAQ) PT Lowered to $76 at UBS

UBS analyst Alex Kramm lowered the price target on Nasdaq OMX Group Inc. (NASDAQ: NDAQ) to $76.00 (from $89.00) while maintaining a Neutral rating.

The analyst commented, “Following NDAQ's March metrics release, we are raising our 1Q25 EPS estimate to $0.77 from $0.76 (vs. $0.76 Street), driven by elevated trading activity in the US options and US equities businesses, and stronger performance in the index business (derivatives volumes). This is partially offset by lower expectations for the Capital Markets Tech business on recent management commentary. More importantly, our forward estimates come down on recent market performance, which drives our index revenue outlook lower (+5% y/y in FY25E vs. +14% previously and +33% in FY24). This leads to our new organic solutions growth forecast of just 7% in FY25, below the 8-11% medium-term range. We are intrigued by the sell-off in the shares, but with the growth outlook coming down, sentiment about IPO markets reopening softening, and new FinTech businesses still unproven, we are not ready to step back in.”

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