IntercontinentalExchange reinstated with a Neutral at Goldman Sachs

Goldman Sachs analyst Alexander Blostein reinstated coverage of IntercontinentalExchange with a Neutral rating and $125 price target following competition of the Black Knight acquisition. The company’s recurring revenue growth has been “recently underwhelming” at an estimated 2%-3% in 2023, mainly driven by a slowdown in fixed Income data and mortgage technology, the analyst tells investors in a research note. The firm thinks the “higher-for-longer” interest rates are likely to remain a headwind to end-markets in both segments. It says ICE‘s near-term earnings growth and leverage will likely limit valuation expansion.