logo
  Join        Login             Stock Quote

UBS Securities Reiterates NYSE Euronext (NYX) At 'Buy', Lifts PT To $38

 April 03, 2012 07:27 PM
 


UBS Securities analyst Alex Kramm increased his price target on shares of NYSE Euronext (NYSE:NYX) to $38 from $32, while reiterating his "Buy" rating.

The brokerage lowered its 2012 EPS estimate to $2.47 from $2.65 and its 2013 estimate to $3.14 from $3.18, while raising its 2014 estimate to $4.00 from $3.67.

Kramm said incremental information from investor day included updated cost guidance for 2012 (in line with expectations after a more detailed review), a 3-year cost cutting initiative ($250 million over 3 years), and previews of new growth initiatives (clearing, CFDs, technology).

[Related -Merger Arbitrage Mondays – June 3, 2013]

While the stock only showed a limited reaction Monday, the analyst believes it is bound to outperform as investors begin to fully appreciate the earnings power created over the next couple of years.

While Kramm is lowering his near-term estimates on current volume trends and a slightly higher expense base, he is raising 2014 EPS estimate. He is also raising price target to $38 as 2014 becomes his primary valuation year. Incremental upside could be driven by a cyclical recovery in volumes and further buybacks ($0.50-plus).

The biggest risk to the analyst's updated buy thesis is the potential for NYX to become a multi-year cost cutting story that investors are not willing to give credit to. In addition, he believes estimates will remain pressured by a lackluster trading environment. That said, at a 4% dividend yield he believes investors are well compensated to be patient.

NYX closed Tuesday's regular session down 1.53% at $29.62.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageIntel Corporation (INTC) Q1 Earnings Preview: A Business in Transition

Intel Corporation (NASDAQ:INTC) plans to post its first quarter earnings results promptly after the market read on...

article imageFord Motor Company (F): A long Road to Deutsche Bank’s $19 Target

Ford Motor Company (NYSE:F) is going the right way on a one way street where most everybody else is driving read on...

article imageCitigroup Inc (C) Q1 Earnings Preview: Too Many Parts Heading South

Citigroup Inc (NYSE:C) will issue its first quarter results via press release at approximately 8 a.m. (ET) read on...

article imageFacebook Inc (FB): You Might Not Like It Today, But You’ll Like It Tomorrow

Do you honestly want to invest in stocks right now? It sure looks like the bull market is at least on read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.