Citi maintains Nasdaq stock neutral with $84 price target

Published 29/01/2025, 15:08
Citi maintains Nasdaq stock neutral with $84 price target

On a positive note, Nasdaq’s adjusted operating expenses were marginally lower than anticipated, reported at $556 million versus the estimated $559 million. Furthermore, the company benefited from an effective tax rate of 24.2%, which was slightly lower than Citi’s forecast of 24.5%.The overall assessment of Nasdaq’s quarterly performance was mixed, according to Citi’s analysts. They anticipate that future discussions will likely center on the company’s growth trajectory, with a particular focus on its financial technology sector. The maintenance of the Neutral rating and the $84.00 price target suggests that Citi’s outlook on Nasdaq’s stock remains unchanged following the earnings report. The stock has shown strong momentum with a 41.35% return over the past year, trading at a P/E ratio of 48.09, which indicates a premium valuation relative to historical levels. The stock has shown strong momentum with a 41.35% return over the past year, trading at a P/E ratio of 48.09, which indicates a premium valuation relative to historical levels.

On a positive note, Nasdaq’s adjusted operating expenses were marginally lower than anticipated, reported at $556 million versus the estimated $559 million. Furthermore, the company benefited from an effective tax rate of 24.2%, which was slightly lower than Citi’s forecast of 24.5%.The overall assessment of Nasdaq’s quarterly performance was mixed, according to Citi’s analysts. They anticipate that future discussions will likely center on the company’s growth trajectory, with a particular focus on its financial technology sector. The maintenance of the Neutral rating and the $84.00 price target suggests that Citi’s outlook on Nasdaq’s stock remains unchanged following the earnings report. The stock has shown strong momentum with a 41.35% return over the past year, trading at a P/E ratio of 48.09, which indicates a premium valuation relative to historical levels.

On a positive note, Nasdaq’s adjusted operating expenses were marginally lower than anticipated, reported at $556 million versus the estimated $559 million. Furthermore, the company benefited from an effective tax rate of 24.2%, which was slightly lower than Citi’s forecast of 24.5%.

The overall assessment of Nasdaq’s quarterly performance was mixed, according to Citi’s analysts. They anticipate that future discussions will likely center on the company’s growth trajectory, with a particular focus on its financial technology sector. The maintenance of the Neutral rating and the $84.00 price target suggests that Citi’s outlook on Nasdaq’s stock remains unchanged following the earnings report.

In other recent news, Nasdaq Inc reported impressive fourth-quarter earnings, surpassing analyst projections. The financial technology business was a key driver, contributing to a 10% increase in revenue to $1.23 billion, with the segment itself seeing a 10% year-over-year increase to $438 million. The company also highlighted 12% organic growth in financial technology annual recurring revenue.

Furthermore, Nasdaq’s index revenue experienced a significant 29% surge to $188 million, benefiting from $28 billion of net inflows in the quarter. The total assets under management in ETPs tracking Nasdaq indexes reached a record $647 billion. For the full year 2024, Nasdaq reported adjusted earnings of $2.82 per share on revenue of $4.68 billion.

On the financial outlook for 2025, the company provided non-GAAP operating expense guidance of $2.25-$2.33 billion and expects a non-GAAP tax rate of 22.5-24.5%. As part of its recent developments, Nasdaq returned $138 million to shareholders via dividends in Q4 and repurchased $181 million of senior unsecured notes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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