Citi reiterates Buy rating on MarketAxess stock, maintains $265 target

Published 07/07/2025, 16:28
Citi reiterates Buy rating on MarketAxess stock, maintains $265 target

Investing.com - Citi has reiterated its Buy rating on MarketAxess (NASDAQ:MKTX) stock, maintaining its price target of $265.00, following the company’s June trading volume report. Currently trading at $219.63, the stock shows potential upside according to InvestingPro data, with analyst targets ranging from $179 to $295.

MarketAxess reported total credit average daily volume (ADV) of $15.7 billion in June, representing an 11% increase year-over-year, though down 4% sequentially from May. The electronic bond-trading platform’s share trends in investment grade and high yield bonds were at the upper end of Citi’s expectations.

The company’s fee per million (FPM) for credit trading came in at $137, relatively in line with May’s $138, according to Citi analyst Chris Allen. Emerging markets activity showed stronger-than-expected performance, driven by a favorable macro environment and strength across products including request-for-market and block trading.

European bond trading activity moderated more than anticipated despite continued growth in portfolio trading and block trading. Overall, Citi characterized June as a "solid month" from both activity and market share perspectives.

Despite volatility decreasing from early second-quarter peaks, MarketAxess has maintained its market share trends as organic initiatives begin to take effect, supporting Citi’s continued constructive view on the stock.

In other recent news, MarketAxess Holdings Inc. reported record trading volumes for the second quarter of 2025, with an average daily volume reaching $49.0 billion, marking a 43% increase from the previous year. The company achieved over $1 trillion in total credit quarterly trading volume and $2 trillion in total rates volume for the first time. Additionally, MarketAxess completed the acquisition of a 90% majority stake in the RFQ-hub platform, enhancing its global expansion efforts in the multi-asset and multi-dealer request for quote space. In personnel news, MarketAxess appointed Dean Berry as Group Chief Operating Officer and CEO for the EMEA and APAC regions, a move aimed at fostering innovation and efficiency. Analyst firm Keefe, Bruyette & Woods raised their stock price target for MarketAxess to $226, maintaining a Market Perform rating. This adjustment followed an earnings report where MarketAxess exceeded earnings per share estimates by $0.06, primarily due to lower expenses and higher non-operating income. However, the firm noted that a higher tax rate and a slight drop in revenues offset some of these gains. Raymond (NSE:RYMD) James reiterated its Market Perform rating on MarketAxess, citing the need for the company to demonstrate sustained market share success.

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