Jefferies Downgrades Nasdaq OMX Group Inc. (NDAQ) to Hold, Sees CME As Stronger Investment

Jefferies downgraded shares of Nasdaq OMX Group Inc. (NASDAQ: NDAQ) to a Hold rating from its previous rating of Buy as shares moved up within 3% of its $29 price target.

The firm believes that if the deal with the NYSE Euronext, Inc.(NYSE: NYX) goes well then the stock could raise an additional 5-10%, but if things don't go as smooth as planed, it could same equally.

Analyst comments that, " As we look at the current landscape within the exchange industry we believe there are more attractive investment opportunities, specifically CME Group (NYSE: CME).

The deal is estimated to result in ~$740 million in combined synergies, NDAQ has highlighted ~$540 million in synergies while Intercontinental Exchange (NYSE: ICE) indicated it can achieve ~$200 million.

Jefferies lowered its FY11 EPS estimates from $2.46 to $2.42 and its revenues estimates from $1,651.7 million to $1,627.4 million.

For more ratings news on Nasdaq OMX Group Inc. click here and for the rating history of Nasdaq OMX Group Inc. click here.

Shares of Nasdaq OMX Group Inc. closed at $28.23 yesterday.

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