Analyst Alex Kramm of UBS maintained a Buy rating on Marketaxess Holdings, retaining the price target of $255.00.
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Alex Kramm has given his Buy rating due to a combination of factors including Marketaxess Holdings’ improved credit volume estimates and favorable market conditions. The company’s Eurobond and US Investment Grade (IG) activities have shown positive trends, contributing to a slight increase in the revenue forecast for the third quarter. Additionally, new initiatives in portfolio trading and client-dealer channels are expected to enhance market share, presenting further growth opportunities.
Despite a decline in credit and rates volume in August, Marketaxess Holdings has demonstrated resilience with increased market share in US IG and High Yield (HY) sectors. The valuation of the company is currently at record lows compared to the S&P 500, suggesting significant upside potential. The price target of $255 is based on a 30x multiple of the projected FY26 earnings per share, reflecting confidence in the company’s future performance.
In another report released on September 5, Morgan Stanley also maintained a Buy rating on the stock with a $274.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MKTX in relation to earlier this year.