Analyst Michael Cyprys from Morgan Stanley maintained a Buy rating on Nasdaq (NDAQ – Research Report) and increased the price target to $96.00 from $93.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Michael Cyprys has given his Buy rating due to a combination of factors including Nasdaq’s ongoing transformation towards more reliable and sustainable revenue streams, which is evidenced by a 9% growth in solutions and a 7% increase in annual recurring revenue in the fourth quarter. This shift is further supported by strong client acquisitions and upselling tactics, setting the stage for accelerated revenue growth projected for 2025, alongside an effective debt reduction strategy.
Furthermore, Cyprys expresses confidence in Nasdaq’s management to successfully implement synergies from recent acquisitions, such as Adenza, and to leverage critical industry trends in areas like index data, regulatory technology, and anti-financial crime solutions. These elements are expected to drive substantial top-line growth. Additionally, he identifies Nasdaq as a potentially undervalued beneficiary of a capital markets resurgence, particularly as the IPO pipeline strengthens. The mix of higher quality recurring revenues, strategic execution on synergies, and de-leveraging supports an optimistic future outlook, with a price target of $96 offering a significant upside potential.
According to TipRanks, Cyprys is a 4-star analyst with an average return of 6.6% and a 57.21% success rate. Cyprys covers the Financial sector, focusing on stocks such as Marketaxess Holdings, Charles Schwab, and Tradeweb Markets.
In another report released yesterday, Piper Sandler also assigned a Buy rating to the stock with a $80.00 price target.