Compass Point Starts Nasdaq OMX Group Inc. (NDAQ) at Neutral; Strong Franchise But Challenging Environment

Compass Point initiates coverage on Nasdaq OMX Group Inc. (NASDAQ: NDAQ) with a Neutral. PT $28.00.

The firm comments, "Our bias is to be more optimistic. The business produces sufficient free cash flow to self fund organic initiatives and small acquisitions. Management has a track record of returning excess capital to shareholders through buybacks and dividends. Improvement in volume trends and progress with ancillary growth opportunities provides the potential for higher earnings. We see scarcity value in the US listings business following the NYX-ICE merger. However, the current operating environment is challenging and the shares are up 17% in the past 6 months versus the DJIA up 4% supporting our initial caution."

For an analyst ratings summary and ratings history on Nasdaq OMX Group Inc. click here. For more ratings news on Nasdaq OMX Group Inc. click here.

Shares of Nasdaq OMX Group Inc. closed at $26.10 yesterday.

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