UPDATE: IntercontinentalExchange (ICE) PT Raised to $160 at Jefferies

Jefferies analyst Daniel Fannon raised the price target on IntercontinentalExchange (NYSE: ICE) to $160.00 (from $135.00) while maintaining a Buy rating.

The analyst comments "ICE’s acquisition of Ellie Mae has resulted in an increased correlation between business performance and the broader macro environment. That said, as volumes potentially slow in the coming quarters, we forecast growth in the other segments of the business. We note that the LT growth prospects for the Mortgage Technology segment remain favorable and mgmt has outlined an +8-10% revenue growth target. Additionally, ICE is primed to restart its buyback program in the NT and we are modeling repurchases to equal $200M in 4Q21. As it pertains to ESG, ICE’s evolving "Global Environmentals" complex has seen +18% and +15% y/y growth in YTD ADV and OI and on average, the Environmentals complex holds a 5:1 contribution to energy revenue relative to its volume contribution. Bottom-line, we believe the growth in recurring revenues should support a higher P/E multiple over time."

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