Analysts Have Been Trimming Their MarketAxess Holdings Inc. (NASDAQ:MKTX) Price Target After Its Latest Report

Shareholders might have noticed that MarketAxess Holdings Inc. (NASDAQ:MKTX) filed its annual result this time last week. The early response was not positive, with shares down 8.7% to US$201 in the past week. MarketAxess Holdings reported in line with analyst predictions, delivering revenues of US$817m and statutory earnings per share of US$7.28, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for MarketAxess Holdings

After the latest results, the 13 analysts covering MarketAxess Holdings are now predicting revenues of US$865.3m in 2025. If met, this would reflect a credible 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.4% to US$7.67. In the lead-up to this report, the analysts had been modelling revenues of US$893.2m and earnings per share (EPS) of US$8.09 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The consensus price target fell 7.1% to US$244, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values MarketAxess Holdings at US$305 per share, while the most bearish prices it at US$189. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.9% growth on an annualised basis. That is in line with its 6.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.8% per year. So although MarketAxess Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of MarketAxess Holdings' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for MarketAxess Holdings going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with MarketAxess Holdings , and understanding it should be part of your investment process.

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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.