In a report released today, Daniel Fannon from Jefferies maintained a Hold rating on Nasdaq (NDAQ – Research Report), with a price target of $75.00.
Daniel Fannon has given his Hold rating due to a combination of factors impacting Nasdaq’s performance. While certain segments like Verafin and Workflow & Insights have not yet reached their full potential, other areas such as Index and Reg Tech are showing strength. The company is experiencing moderated expense growth, which is expected to support double-digit earnings growth. However, cyclical challenges, particularly in IPO activity, persist and are a concern.
Additionally, the potential for reduced regulation under the new administration could impact the Reg Tech segment, though there are opportunities for growth as financial institutions may still need to enhance their risk monitoring capabilities. Verafin’s growth is slightly below expectations, with progress being made in signing tier-1 banks, but the sales cycle remains lengthy. The Index segment has been a strong performer, but its exceptional growth rate is unlikely to be sustained. These mixed factors contribute to the Hold rating as Nasdaq works towards achieving its medium-term targets.