Keefe reiterates Nasdaq stock Outperform rating, $91 target By Investing.com
On Thursday, Keefe, Bruyette & Woods maintained a positive outlook on Nasdaq OMX Group Inc. (NASDAQ:NDAQ) shares, reasserting an Outperform rating and a price target of $91.00. The firm’s analyst highlighted the recent revenue capture figures released by Nasdaq, which exceeded Keefe, Bruyette & Woods’ expectations. According to the analyst, Nasdaq’s fourth-quarter 2024 earnings per share (EPS) are projected to be $0.74, just a cent below the consensus estimate of $0.75.
The analyst noted that based on the fourth-quarter 2024 metrics, Nasdaq’s financial performance appears to be tracking slightly above the consensus estimate by approximately $0.01. This observation is based on the new data regarding revenue capture, which has shown stronger results than initially anticipated by Keefe, Bruyette & Woods.
Despite the positive indicators, the analyst pointed out that a significant portion of Nasdaq’s revenues are derived from nontransaction-related sources. This diversification in revenue streams could lead to potential variances from the current model. As a result, the firm has indicated that their estimates are under review to possibly adjust for these factors.
Nasdaq’s stock performance and future outlook are closely monitored by investors, with the company’s diverse revenue sources playing a crucial role in its overall financial health. Keefe, Bruyette & Woods’ reiterated Outperform rating and stable price target reflect confidence in the company’s ability to maintain its positive trajectory amidst market fluctuations.
Keefe, Bruyette & Woods’ analysis underscores the importance of revenue capture as a key metric in assessing Nasdaq’s financial performance. The firm’s continued optimism in the stock suggests a belief in the company’s solid fundamentals and potential for sustained growth.
In other recent news, Nasdaq OMX Group Inc. has been the subject of several significant developments. Deutsche Bank (ETR:) upgraded the company’s stock from Hold to Buy, raising the price target to $98.00. This decision was influenced by the company’s earnings potential and the successful integration of the Adenza deal. Nasdaq’s annual double-digit earnings per share growth for the 2025-27 forecast period is a key factor in Deutsche Bank’s positive outlook.
Furthermore, Nasdaq reported a strong third quarter in 2024, marking four consecutive quarters of double-digit growth. This success was driven by a 10% increase in both net revenues and solutions revenue, and a rise in total annualized recurring revenue to $2.7 billion, an 8% increase from the previous year.
The company also received an Outperform rating from William Blair, which highlighted Nasdaq’s diversified revenue streams and scalable technology solutions. The firm believes these factors will support the company’s long-term growth prospects.
Additionally, Nasdaq announced it would close all of its U.S. equities and options markets on a specific day to honor the late President Jimmy Carter. This closure will allow traders, investors, and Nasdaq employees to pay their respects to President Carter.
Lastly, Super Micro Computer (NASDAQ:) is working diligently to maintain its NASDAQ listing with the assistance of BDO USA, amid potential delisting risks. These are the recent developments concerning Nasdaq OMX Group Inc.
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