Exclusive Private Market Data Partnership Could Be a Game Changer for TMX Group (TSX:X)

• Tracxn Technologies recently announced a partnership with TMX Datalinx, the information services arm of TMX Group, to deliver exclusive access to global private market intelligence for Canadian financial institutions, while VettaFi, a TMX subsidiary, launched the TMX VettaFi Canadian Bond Indices suite as benchmarks for the Canadian Dollar fixed-income market.
• This move positions TMX Group to provide more comprehensive data and index solutions to institutional investors, broadening its data coverage across both public and private markets.
• We’ll explore how the exclusive private markets intelligence agreement could influence TMX Group’s investment narrative and future opportunities.

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TMX Group Investment Narrative Recap

To own TMX Group stock, you need to believe in its ability to capitalize on growth in both public and private market data services, as well as drive recurring revenues from its expanding analytics business. The latest partnership with Tracxn Technologies may boost its data analytics offering and broaden client appeal, but it is unlikely to materially impact the strongest short-term catalyst, increasing derivatives trading and clearing activity, nor does it meaningfully shift the biggest risk, which remains intensifying global competition and the decline in public listings.

The most relevant recent announcement is the exclusive Canadian agreement with Tracxn Technologies, which gives TMX clients access to comprehensive global private market intelligence. While this strengthens TMX’s grip on institutional investors seeking alternative assets, the main near-term driver is still the momentum in TMX's derivatives and clearing business, as capital markets volatility fuels demand for new trading products and risk management tools.

However, investors should keep in mind that, given the expanding competition from bigger international exchanges, there’s a risk that...

Read the full narrative on TMX Group (it's free!)

TMX Group's narrative projects CA$2.0 billion revenue and CA$692.5 million earnings by 2028. This requires 7.3% yearly revenue growth and a CA$270.5 million earnings increase from the current CA$422.0 million.

Uncover how TMX Group's forecasts yield a CA$61.79 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from CA$35.48 to CA$70 across five independent views. While membership in global indices and the new Tracxn agreement may drive future relevance, you can compare these opinions for a full view of TMX’s investment case.

Explore 5 other fair value estimates on TMX Group - why the stock might be worth as much as 41% more than the current price!

Build Your Own TMX Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TMX Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free TMX Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TMX Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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