How AGNC Partnership and New MBS Indices Could Shape ICE's (ICE) Data Strategy

• AGNC Investment Corp. recently announced a collaboration with Intercontinental Exchange (ICE) to launch a suite of fixed income indices tracking the performance of agency mortgage-backed securities, including 30-year and 15-year UMBS as well as GNMA securities.
• This initiative highlights ICE's growing presence in the structured finance and fixed income data markets, offering new benchmarking tools for investors in mortgage-backed securities.
• We'll explore how the launch of these mortgage-backed securities indices could influence ICE's outlook in data and analytics-driven growth.

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Intercontinental Exchange Investment Narrative Recap

Owning shares of Intercontinental Exchange (ICE) means believing in the continued digitization of global markets, the growth of data and analytics-driven services, and ICE’s ability to expand beyond its traditional trading businesses. The recent launch of fixed income indices for agency mortgage-backed securities strengthens ICE’s data business but does not alter the company’s most important short term catalysts or its biggest risks, such as sustained pressures in energy trading volumes or integration hurdles from large acquisitions.

Among recent developments, the October 9 announcement that Loomis, Sayles & Company will use ICE's climate risk data is particularly relevant. This highlights ICE’s focus on expanding its high-margin analytics and reinforces the role of data-driven solutions as a key growth driver in the face of evolving industry catalysts.

By contrast, investors should also be mindful of emerging risks in mortgage technology revenue and potential integration complexities if...

Read the full narrative on Intercontinental Exchange (it's free!)

Intercontinental Exchange's outlook projects $11.4 billion in revenue and $4.1 billion in earnings by 2028. This scenario assumes a 5.7% annual revenue growth rate and a $1.1 billion increase in earnings from the current $3.0 billion.

Uncover how Intercontinental Exchange's forecasts yield a $201.12 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Fair value estimates from seven Simply Wall St Community members range from US$111.10 to US$201.13 per share. While opinions differ, growth in ICE's high-quality analytics business continues to add another dimension to performance potential, review other viewpoints to get the full context.

Explore 7 other fair value estimates on Intercontinental Exchange - why the stock might be worth as much as 31% more than the current price!

Build Your Own Intercontinental Exchange 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 Intercontinental Exchange research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Intercontinental Exchange research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Intercontinental Exchange'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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