MarketAxess stock rating reiterated at Buy by UBS on growth outlook

Investing.com - UBS has reiterated its Buy rating and $295.00 price target on MarketAxess (NASDAQ:MKTX), despite lowering quarterly earnings estimates following June metrics release. According to InvestingPro data, MKTX currently trades at $219.15, with a P/E ratio of 38.2x, and maintains a solid financial health score of "GOOD."

The investment bank reduced its second-quarter 2025 earnings per share estimate to $2.04 from $2.11, compared to the Street consensus of $1.97, citing lower credit transaction fees in its analysis.

UBS noted that total credit volume was 2.5% lower than previously expected, while rates volume fell 2.0% below prior forecasts, though the firm still projects total revenue to increase 11% year-over-year for the quarter.

The growth forecast stems from higher credit and rates volumes that should offset lower pricing, with preliminary credit fee per million metrics aligning with UBS estimates for the second quarter.

UBS maintains its positive outlook on MarketAxess, citing potential for elevated volatility to drive higher platform activity and new initiatives that could accelerate market share, while emphasizing the stock’s valuation sits near all-time lows relative to the S&P 500.

In other recent news, MarketAxess Holdings Inc. reported record trading volumes for the second quarter of 2025. The company’s total trading average daily volume reached $49.0 billion, marking a 43% increase compared to the previous year. The firm also achieved a significant milestone by surpassing $1 trillion in total credit quarterly trading volume. In addition, MarketAxess completed the acquisition of a 90% majority stake in the RFQ-hub platform, a leader in the multi-asset and multi-dealer request for quote space. This acquisition is part of MarketAxess’s strategy to expand its global footprint in equity and fixed-income listed and over-the-counter derivatives, structured products, and ETFs. Analysts have weighed in on the company’s performance, with Citi reiterating its Buy rating and maintaining a price target of $265, citing solid trading volume and market share trends. Meanwhile, Raymond (NSE:RYMD) James has maintained a Market Perform rating, expressing the need for MarketAxess to demonstrate sustained momentum across various market conditions. Additionally, MarketAxess announced the appointment of Dean Berry as Group COO and CEO for the EMEA and APAC regions, aiming to enhance global operations and innovation. These developments reflect MarketAxess’s ongoing efforts to strengthen its position in the electronic trading market.

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