BofA Securities Reinstates IntercontinentalExchange (ICE) at Neutral

BofA Securities analyst Craig Siegenthaler reinstates coverage on IntercontinentalExchange (NYSE: ICE) with a Neutral rating and a price target of $158.00.

The analyst comments "We reinstate research coverage of Intercontinental Exchange (ICE) with a Neutral rating and a price objective of $158 which implies 19% total return potential. While we believe the ICE stock’s recent valuation re-rating was justified given its improved mix to secular growth businesses (fixed income data, index, mortgage technology) and (2) earnings quality (recurring revenue contribution ~50%), we believe the stock is already loved by the sellside (15 buys vs. 0 sells) and buyside (only 70bps of short interest). We also expect higher rates to temporarily depress mortgage tech revenue growth in 2022. However, we are more bullish on the growth potential of ICE’s futures/energy business relative to CME’s which trades at a premium."

For an analyst ratings summary and ratings history on IntercontinentalExchange click here. For more ratings news on IntercontinentalExchange click here.

Shares of IntercontinentalExchange closed at $135.12 yesterday.

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