BMO Capital analyst Etienne Ricard maintained a Buy rating on TMX Group yesterday and set a price target of C$61.00.
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Etienne Ricard’s rating is based on TMX Group’s strong organic revenue growth potential and its strategic positioning for future earnings expansion. The company is expected to achieve a 13% organic topline growth in the upcoming quarter, marking the fourth consecutive quarter of double-digit growth. This performance is driven by robust activity in derivatives and improvements in cash equities, which are key components of TMX’s operations.
Additionally, TMX’s ability to consistently execute on self-help initiatives and progress towards transformational objectives supports its premium valuation. The increase in target price to $61 reflects the company’s enhanced valuation multiple due to its sustained high-single-digit organic revenue growth. These factors collectively contribute to the Buy rating, indicating confidence in TMX’s capacity to deliver strong financial results and maintain its market leadership.
Ricard covers the Financial sector, focusing on stocks such as Sprott, Fiera Capital A, and goeasy. According to TipRanks, Ricard has an average return of 24.5% and a 72.90% success rate on recommended stocks.
In another report released on July 14, Canaccord Genuity also maintained a Buy rating on the stock with a C$60.00 price target.