Product Investments And AWS Partnership Will Modernize Global Markets

Nasdaq's analyst price target saw a modest increase of $1.00, with analysts citing steady revenue growth, resilient profit margins, and positive momentum in market services and index businesses as factors supporting this upward adjustment.

Analyst Commentary

Recent analyst research on Nasdaq highlights a broadly constructive tone, with incremental adjustments to price targets and nuanced views on future growth and market execution. Street research points to ongoing momentum in several of Nasdaq’s core business areas, along with measured caution regarding market dynamics and broader sector headwinds.

• Bullish analysts see robust revenue growth driven by strong performance in Index and Market Services segments. This performance underpins their positive outlook on valuation.
• Ongoing enterprise wins and successful cross-selling initiatives are expected to accelerate annual recurring revenue, supporting forecasts for improved sales performance in coming quarters.
• Expansion in the FinCrime segment, with projected double-digit revenue growth, is cited as a foundation for further topline strength through fiscal year 2026.
• Analysts point to continued retail engagement and increased volume across futures and options. These trends are viewed as signs of healthy execution and market positioning.

• Bearish analysts are cautious about the impact of normalized volatility and trading volumes. They suggest this could temper upside potential in the short term.
• Lowered price targets by some analysts reflect tempered optimism, particularly as the market awaits further clarity on sector-wide catalysts and rate paths.
• There is an expectation that Q3 results may not yield major surprises, suggesting potential for limited near-term re-rating.
• Macro factors such as fluctuations in interest rates, inflation, and ongoing tariff discussions are viewed as variables that could introduce execution risk.

What's in the News

• Nasdaq halted trading in Apollomics on September 17 at 14:37 Eastern Time, pending additional information requested from the company. Trading will remain halted until requirements are met. (Periodical)
• Nasdaq and Amazon Web Services have expanded their partnership to offer Nasdaq Calypso, a managed capital markets and treasury management platform, as a fully managed service on AWS. This aims to accelerate modernization for financial institutions. (Key Development)
• American Life & Security Corp. has partnered with Nasdaq Global Indexes to launch the Nasdaq-100 Intraday Elite 15% Index, now included with the American Select Fixed Indexed Annuity. The product offers dynamic intraday rebalancing and a 15% volatility target. (Key Development)
• Nasdaq Verafin announced the launch of the Agentic AI Workforce, a suite of digital workers designed to automate and enhance anti-money laundering (AML) compliance processes within banks. The goal is to reduce manual workloads and improve efficiency. (Key Development)
• Premialab and Nasdaq eVestment entered a strategic partnership to provide institutional investors with unified analytics and expanded access to investment data. This partnership enhances capabilities for risk diagnostics and portfolio construction. (Key Development)

Valuation Changes

• Fair Value: Increased slightly from $100.67 to $101.67. This reflects a modest upward adjustment in valuation estimates.
• Discount Rate: Edged higher from 8.50% to 8.55%. This indicates a small increase in required rate of return assumptions.
• Revenue Growth: Improved incrementally, with the forecasted decline narrowing from -9.24% to -9.20%.
• Net Profit Margin: Risen slightly from 33.45% to 33.61%. This suggests a small enhancement in profitability expectations.
• Future P/E: Increased marginally from 36.13x to 36.32x. This implies a minor rise in anticipated valuation multiples.