Deutsche Bank Downgrades Nasdaq OMX Group Inc. (NDAQ) to Hold, 'Weaker Outlook for 2023'

January 26, 2023 4:43 AM EST
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Price: $54.95 +1.35%

Rating Summary:
    14 Buy, 14 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 3 | New: 43
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(Updated - January 26, 2023 4:43 AM EST)

Deutsche Bank analyst Brian Bedell downgraded Nasdaq OMX Group Inc. (NASDAQ: NDAQ) from Buy to Hold with a price target of $60.00 (from $72.00).

The analyst comments "Post 4Q results and our revised view on forward estimates, we are downgrading NDAQ from Buy to Hold. We think 2023 will become a considerably more challenging year for NDAQ than previously anticipated, due to 1) a higher expense growth trajectory than expected, 2) slower recurring revenue growth in several Solutions business due mostly to an extension of sales cycles, 3) likelihood of a more adverse impact from lower equity markets on recurring revenue than anticipated, 4) we now believe 2023 results will have negative operating leverage with 5% expense growth vs. 2% Solutions recurring revenue growth, and 5) nonGAAP EPS growth may be negative for the first time since 2012 and we do not foresee any revenue or expense catalysts emerging for at least the next few quarters."

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 $58.30 yesterday.

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