AnalystConsensusTarget updated the narrative for NDAQ

Analysts have slightly increased their price target for Nasdaq, raising it by $1.00 to $102.67. They cite strong recent earnings results and continued momentum in core business segments.

Analyst Commentary

Recent street research has highlighted both optimism and lingering questions around Nasdaq's near-term trajectory. Analysts continue to adjust their price targets as they weigh strong earnings reports, solid revenue growth, and the evolving business mix.

• Multiple analysts raised price targets, signaling confidence in Nasdaq's financial outlook and ability to deliver on execution, particularly after strong Q3 results.
• Revenue momentum in Financial Technology was singled out as a primary growth driver, with expectations that this trend can continue or possibly accelerate in coming quarters.
• Nasdaq's transformation from a traditional exchange operator to a diversified technology provider, supported by the acquisitions of Verafin and Adenza, is seen as expanding its long-term growth opportunity set.
• Growth in key segments such as Market Services and robust performance in Index are providing positive support to both revenue and earnings targets, with projected mid-to-high single digit revenue and low teens earnings growth over the medium term.

• Some caution remains around softer revenue trends in specific segments, such as Index, which offset gains elsewhere in the business.
• Analysts remain watchful of external market conditions, including volatility and trading volumes, which can impact core operations even amid broader momentum.
• Lowered price targets by select analysts reflect an acknowledgment that, despite continued growth, certain headwinds or uncertainties could weigh on near-term valuation.
• Growth projections and earnings beats are, in part, dependent on sustained success in recently acquired and newly integrated business units, which could present execution risk going forward.

What's in the News

• Nasdaq temporarily halted trading in Apollomics (APLM) pending additional information from the company. Trading will resume only after Nasdaq's request is satisfied (Periodical).
• Nasdaq repurchased over 1.2 million shares from July to September. This brings the total to 39.3 million shares under its long-term buyback program, with $3.8 billion invested since 2014 (Key Development).
• New enhancements to the market surveillance platform have been unveiled, embedding advanced AI capabilities that strengthen detection and enforcement of market abuse for exchanges and regulators worldwide (Key Development).
• The partnership with Amazon Web Services has been expanded, enabling Nasdaq Calypso to be offered as a fully managed service on AWS to support the modernization of capital markets and treasury infrastructure (Key Development).

Valuation Changes

• Fair Value has increased slightly, up $1 to $102.67 from $101.67. This reflects updates to underlying growth and profitability assumptions.
• Discount Rate is marginally higher at 8.55%, compared to the previous rate of 8.55%. This indicates a slightly higher required return for investors.
• Revenue Growth estimates have improved, with the projected decline moderating from -9.20% to -8.60%.
• Net Profit Margin has risen modestly to 33.91%, from 33.61% previously.
• Future P/E has declined from 36.32x to 34.72x. This suggests a slightly lower valuation multiple on forward earnings.