ENX: Share Buybacks And CAC 40 Inclusion Will Drive Renewed Momentum

The analyst price target for Euronext has been nudged higher by approximately EUR 0.20 to reflect slightly stronger expectations for revenue growth and profit margins, with analysts citing a more balanced risk reward profile despite mixed recent target revisions across the Street.

Analyst Commentary

Recent research updates highlight a more neutral stance on Euronext, with higher conviction that the current share price better reflects the company’s medium term earnings prospects. Price target revisions have converged toward a tighter range, suggesting that expectations for growth, margins, and capital returns are becoming more aligned across the Street.

While some analysts are trimming their upside assumptions to factor in more conservative volume and cost outlooks, others see the recent share price pullback as an opportunity to reset expectations at more attractive valuation levels.

Bullish Takeaways

• Bullish analysts cite the recent stock pullback as providing a more compelling entry point, with the risk reward profile now viewed as more balanced relative to Euronext’s earnings visibility.
• Incremental price target increases at major houses, including JPMorgan, reflect confidence that Euronext can sustain healthy profit margins, underpinned by disciplined cost control and resilient trading activity.
• The move from a negative to a Neutral stance by some large brokers is interpreted as a sign that downside risks to the equity story are now better captured in the valuation.
• Supportive views emphasize that, at current multiples, even moderate upside to revenue growth or operating leverage could contribute to competitive total returns versus peers.

Bearish Takeaways

• Bearish analysts have lowered price targets to reflect more muted expectations for top line growth, particularly if market volumes normalize from elevated levels, which could limit near term earnings momentum.
• There is caution that further multiple expansion may be limited if Euronext does not deliver clear evidence of accelerating organic growth or incremental cost efficiencies.
• Some remain wary that macro uncertainty and lower trading volatility could pressure transaction based revenues, leaving less room for positive earnings surprises.
• The clustering of ratings around Neutral signals that many analysts see limited scope for material outperformance unless Euronext exceeds current execution benchmarks on integration, technology investments, and product expansion.

What's in the News

• Citi analyst Andrew Coombs lowered Euronext's price target to EUR 139 from EUR 157, maintaining a Neutral rating on the shares (Citi periodical).
• Euronext received Hellenic Capital Market Commission and energy regulator approvals for its acquisition of a qualifying holding in the ATHEX Group and related entities, with all tender offer conditions now satisfied and the deal declared unconditional (Regulatory Authority – Compliance).
• Euronext launched a share repurchase programme of up to 9.42% of its issued share capital, including a specific buyback of 101,000 shares to service its Long Term Incentive plan, running from September 4 to October 6, 2025 (Buyback Transaction Announcements).
• Euronext was added as a constituent to the Paris CAC 40 Index, marking its inclusion in the benchmark French equity index (Index Constituent Adds).
• A separate index review recorded Euronext N.V. as removed from an unspecified index, underscoring ongoing adjustments in benchmark compositions (Index Constituent Drops).

Valuation Changes

• The Fair Value Estimate has risen slightly to approximately €147.13 from €146.93, reflecting a marginally higher intrinsic value assessment.
• The Discount Rate has increased modestly to about 7.05% from 6.98%, implying a slightly higher required return and a marginally more conservative valuation framework.
• Revenue Growth has edged up to roughly 4.08% from 4.06%, indicating a small uplift in long term top line growth assumptions.
• The Net Profit Margin has risen marginally to around 38.43% from 38.41%, signaling a very small improvement in expected profitability.
• The future P/E multiple has ticked up slightly to about 22.72x from 22.67x, pointing to a minimally higher valuation multiple applied to forward earnings.