Nasdaq Inc, symbolized as NDAQ on the NASDAQ exchange, experienced a slight setback with a secondary share offering by Borse Dubai last week.
After a period of sluggish growth, Nasdaq’s financial performance is anticipated to gain momentum in 2025 and 2026, as per projections by Goldman Sachs.
Nasdaq’s Analyst: Alexander Blostein, in an astute move, elevated Nasdaq’s rating from Neutral to Buy, setting a target price of $73.
Nasdaq’s Trajectory: Blostein’s analysis points towards a potential surge in earnings growth from a modest 5% between 2021 and 2024 to an impressive 12% over the subsequent two years.
Peruse through various analyst stock ratings for more insights.
Three catalysts are identified by the analyst that are expected to fuel Nasdaq’s earnings growth:
- “Integration of Adenza into a more enterprise-focused offering across NDAQ’s clientele, propelling the company’s Fin Tech revenue growth (comprising 36% of the total) towards the upper echelon of the management’s long-term target of 10%-14%.”
- “Upward momentum from strong US Cash Equity and Options volumes, robust growth in NDAQ’s Index business, positive prospects for Listings, and a trend towards shorter sales cycles.”
- “Rapid de-leveraging surpassing management’s expectations, potentially leading to earlier-than-envisioned share repurchases by 2025. The company is expected to prioritize organic growth over mergers and acquisitions moving forward.”
Nasdaq’s Stock Movement: Nasdaq’s shares surged by 2.18% to $62.39 at the time of the article’s publication on Tuesday.
Further Reading: Larry Fink’s Cautionary Note on the US Retirement Landscape in BlackRock’s Annual Communication: ‘Self-Reliance Is Imperative’
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