Citi reiterates Buy rating on Tradeweb Markets stock with $165 target

Investing.com - Citi has reiterated its Buy rating on Tradeweb Markets (NASDAQ:TW) stock with a price target of $165.00, following the company’s June trading volume report. According to InvestingPro data, the company maintains a "GREAT" financial health score, though current valuations suggest the stock is trading above its Fair Value.

Tradeweb reported total average daily volume (ADV) of $2.4 trillion in June, representing a 26% year-over-year increase. The growth was driven by multiple segments, including cash rates which rose 7% year-over-year, interest rate swaps (IRS) which increased 6%, and credit trading where fully electronic U.S. ADV climbed 14% compared to the same period last year. This performance aligns with the company’s strong revenue growth trajectory, which InvestingPro data shows at 29% over the last twelve months.

In the credit segment, Tradeweb’s market share performance met expectations in high yield (HY) bonds and exceeded expectations in investment grade (IG) bonds, according to Citi’s analysis.

The financial performance metrics (FPM) for the quarter were described as "largely in-line to better than expected" by the research firm, though specific figures were not disclosed in the report.

Citi maintains a constructive outlook on Tradeweb’s long-term growth potential, citing "numerous long-term structural growth opportunities across asset classes," while acknowledging some challenging year-over-year comparisons in the near term, particularly in the rates segment.

In other recent news, Tradeweb Markets reported a significant increase in trading volumes, with a 25.9% rise in average daily volume for June 2025, reaching $2.4 trillion. The company’s second-quarter trading volume hit a record $165.3 trillion, marking a 32.7% year-over-year increase. Tradeweb also launched direct U.S. Treasury bill trading for corporate treasurers, enhancing its services for corporate clients. This follows the company’s acquisition of Institutional Cash Distributors in 2024, aimed at expanding its corporate treasury services. Additionally, Tradeweb appointed Sherry Marcus as the new Head of Artificial Intelligence to bolster its AI capabilities. Raymond (NSE:RYMD) James raised its price target for Tradeweb to $156, maintaining an Outperform rating based on solid volume trends and expected market share gains. The firm highlighted potential revenue growth in U.S. Treasuries, interest rate swaps, and U.S. corporate bonds. These developments reflect Tradeweb’s ongoing efforts to enhance its electronic trading platform and services for a diverse client base.

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