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Investing.com - Jefferies has raised its price target on Intercontinental Exchange (NYSE:ICE) to $209.00 from $178.00 while maintaining a Buy rating, citing strong performance in the company’s energy segment. The stock, currently trading at $180.51, sits near its 52-week high of $183.99, with InvestingPro data showing six analysts recently revising their earnings estimates upward.
The firm increased its Q2 2025 earnings per share estimate to $1.77 from $1.71, driven by upward revisions to exchange segment revenue, now projected at $1,410 million compared to the previous estimate of $1,357 million.
Energy revenue exceeded Jefferies’ previous estimate by $59 million, primarily due to higher volumes of 5.5 million versus the previously estimated 5.0 million, along with modestly higher revenue per contract.
In the fixed income segment, credit default swap clearing revenue reached $83.0 million, slightly above the previous estimate of $81.9 million, while mortgage revenue estimates for Q2 2025 were lowered from $539.4 million to $533.8 million.
Jefferies now models adjusted operating expenses of $986 million for Q2 2025, within ICE’s guidance range of $980-$990 million, resulting in an adjusted operating margin of 61.2%, up from the previously estimated 60.5%.
In other recent news, Intercontinental Exchange, Inc. (ICE) reported record trading volumes for the first half of 2025, with 1.2 billion futures and options contracts traded, marking a 24% increase year-over-year. The company highlighted significant growth in energy trading, with oil and natural gas contracts reaching new highs. Additionally, ICE saw a 14% rise in financial market trading volumes, driven by increased activity in interest rate products. In a related development, UBS raised its price target for ICE to $210, citing strong trading activity and an improved earnings outlook, while maintaining a Buy rating. The firm’s revised earnings per share estimate for the second quarter of 2025 is $1.78, slightly above the consensus. Furthermore, ICE plans to expand its NYSE indices, including the introduction of the NYSE Elite Tech 100 Index, aimed at capturing leading technology companies across U.S. exchanges. This expansion will also feature equal-weight versions of existing indices, providing broader exposure to smaller companies. Lastly, UBS reiterated its positive outlook on ICE’s long-term growth prospects, particularly in energy and mortgage technology sectors.
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