Nasdaq double upgraded to Buy at BofA with IPO flywheel returning

As previously reported, BofA analyst Craig Siegenthaler double upgraded Nasdaq to Buy from Underperform with a price target of $90, up from $53, contending that the company has assembled a “collection of wide-moat and high-growth businesses” in software and information services. The stock still trades in-line with its lower-growth traditional peer group of exchanges, despite just 19% of 2024 revenue stemming from trading, which the firm see pointing toward a potential rerating. In addition, the firm forecasts a rebound in IPOs following the U.S. presidential election, which will benefit Nasdaq’s listing business and associated cross-selling, the analyst tells investors.