Analyst Michael Cyprys from Morgan Stanley maintained a Buy rating on Marketaxess Holdings and decreased the price target to $247.00 from $253.00.
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Michael Cyprys has given his Buy rating due to a combination of factors including the current macroeconomic environment and MarketAxess Holdings’ strategic initiatives. The company is positioned to benefit from increased volatility and widening credit spreads, which are expected to boost trading volumes and earnings in the near term. Additionally, MarketAxess is making progress with new protocol initiatives, which are expected to support long-term growth.
Cyprys notes that the company’s valuation is attractive, trading at a lower multiple compared to its peers, which suggests potential for upward revaluation. The macroeconomic outlook, characterized by slower economic growth and higher core inflation, is likely to enhance credit trading volumes, benefiting MarketAxess. Furthermore, the company’s continued innovation and product development, such as the rollout of new solutions and auctions, are expected to drive market share gains and support the electronification of fixed-income markets.
MKTX’s price has also changed moderately for the past six months – from $228.140 to $167.270, which is a -26.68% drop .