UBS Remains Bullish After Cutting NASDAQ OMX Group (NDAQ) EPS Estimates

UBS reiterated a Buy rating on Nasdaq OMX Group Inc. (NASDAQ: NDAQ), and raised the price target to $75.00 (from $74.00), ahead of the company's 1Q earnings report. UBS cut 1Q EPS estimates to $0.88 from $0.90, below the $0.90 Street consensus. Average daily volumes were mostly down both y/y and m/m. ADV in both US and European equity derivatives declined in March.

UBS Analysts commented, "Volumes were mostly down in March, and 1Q volumes ended below our expectations in several categories (North American equities, US equity derivatives, and European fixed income). Although European equity and equity derivative volumes were slightly above expectations, somewhat disappointing pricing metrics (most notably for North American equities) added to the downside in our estimate revision. Finally, we have increased our Corporate Solutions (Marketwired closed late February) and our Market Services (Chi-X Canada closed at beginning of February) revenue estimates to reflect new business additions, which have an accretive impact on our 2016 forecast. While the poor pricing metrics give some pause, we expect revenue capture to swing back again in a more normalized trading environment. In addition, we still see more room for multiple expansion (business mix) and like the accretion from pending acquisitions."

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 $63.67 yesterday.

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