Raymond James has made adjustments to its ratings on two major exchange groups.
Nasdaq OMX Group Inc. (NASDAQ: NDAQ) was upgraded from Market Perform to Outperform with a new price target set at $82.00.
The shift in rating aligns with the analyst's observation of Nasdaq's increasing similarities with Intercontinental Exchange (NYSE:ICE) in several aspects of their businesses.
The analyst noted that both Nasdaq and ICE have developed comparable revenue and EPS growth profiles, business composition, balance sheet leverage, and returns on invested capital over time.
Despite recognizing ICE's stronger trading franchise and higher operating margin, the recent trends have prompted a reevaluation of the two firms.
In addition to upgrading Nasdaq, the analyst has revised the outlook for ICE. Expectations for a cyclical recovery in ICE's mortgage technology business in 2025 have been tempered due to a recent sharp increase in mortgage rates. As a consequence, ICE's rating was downgraded from Strong Buy to Outperform.
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