Alex Kramm, an analyst from UBS, maintained the Buy rating on Nasdaq. The associated price target remains the same with $120.00.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Alex Kramm has given his Buy rating due to a combination of factors that highlight Nasdaq’s solid growth outlook and execution. He emphasizes that Nasdaq is delivering strong progress across all major segments, with the solutions business posting robust double‑digit organic growth and both Confidence and Capital Access Platforms contributing meaningfully. He also notes that the FinTech operations are gaining traction, supported by accelerating sales activity and a healthy pipeline driven by strong global client engagement. In addition, new initiatives within Market Services, such as innovative options products and future plans around extended trading and tokenized equities, underscore Nasdaq’s ability to innovate and expand its addressable market.
Kramm acknowledges a modest downward revision to EPS estimates for 2026 and 2027 due to slightly higher expense guidance, but he still projects attractive double‑digit earnings growth over the next two years. He expects revenue to continue rising, supported by strength in US options, data and listings, index products, and capital markets and regulatory technology, even as some areas like Workflow & Insights and Verafin are trimmed. In his view, Nasdaq’s solutions growth should remain toward the upper end of management’s medium‑term target range, helping the company’s valuation trend closer to information services peers. Reflecting this confidence, he maintains a Buy rating and a $120 price target, based on applying a 27x multiple to his 2027 EPS estimate, indicating meaningful upside from current levels.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $115.00 price target.