Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Jefferies has reduced its price target on MarketAxess (NASDAQ:MKTX) to $208.00 from $217.00 while maintaining a Hold rating on the stock. The stock, currently trading at $187.01, has declined nearly 11% in the past week and is trading near its 52-week low of $183.00. According to InvestingPro analysis, MarketAxess shows strong financial health with a current ratio of 7.55x and maintains a 17-year track record of consistent dividend payments.
The price target adjustment follows MarketAxess’s second-quarter 2025 results and its July volume report, which prompted Jefferies to decrease its earnings per share estimates for the remainder of 2025 by 3% and for 2026 by 1%. Despite trading at a relatively high P/E ratio of 31.4x, InvestingPro data reveals the company maintains robust profitability with a gross margin of 61.85% and strong cash flows that adequately cover its obligations.
Jefferies also restated its first-quarter 2025 estimates to reflect a non-GAAP adjustment of a $54.9 million one-time reserve, which had a $1.47 per share EPS impact, taken for uncertain tax positions following a New York state tax ruling.
The second-quarter 2025 results contained two additional non-GAAP expense adjustments related to severance and acquisition-related charges, which had a $0.09 per share EPS impact.
Despite the reduced price target, Jefferies maintained its Hold rating on MarketAxess stock, suggesting a neutral outlook on the fixed-income trading platform’s near-term performance.
In other recent news, MarketAxess Holdings Inc. reported its second-quarter 2025 earnings, which exceeded analyst forecasts. The company’s earnings per share (EPS) surpassed expectations, highlighting a strong financial performance for the period. Despite the positive earnings report, the company’s stock experienced a decline in pre-market trading. These developments are part of the latest updates regarding MarketAxess. The earnings results are a key focus for investors, as they provide insight into the company’s financial health and operational efficiency. Additionally, the reaction in the stock market underscores the complexity of investor sentiment and market dynamics.
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