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On Thursday, Keefe, Bruyette & Woods updated their position on MarketAxess Holdings Inc. (NASDAQ: MKTX), increasing the stock’s price target to $226 from the previous $223. The firm sustained its Market Perform rating for the electronic trading platform.
The adjustment follows MarketAxess’s recent earnings report, which revealed a $0.06 earnings per share (EPS) beat compared to Keefe, Bruyette & Woods and consensus estimates, excluding notable items related to uncertain tax positions. The beat was attributed to lower-than-expected expenses, which improved EPS by $0.10, and greater non-operating income, adding $0.03 per share. These gains were slightly offset by a drop in revenues, which reduced EPS by $0.01, and a higher tax rate, decreasing EPS by $0.06.
Keefe, Bruyette & Woods expressed optimism, noting a stronger-than-anticipated industry volume environment, particularly in the High Yield credit sector. The firm also acknowledged the impact of MarketAxess’s majority acquisition of RFQ-Hub, a multi-asset trading platform for requesting quotes. However, they anticipate that a higher tax rate will partially counterbalance these positive factors.
The report from Keefe, Bruyette & Woods suggests that MarketAxess is adjusting well to market conditions and is expected to benefit from the recent business developments. The firm’s raised price target reflects confidence in the company’s potential for sustained performance amidst a dynamic industry landscape.
In other recent news, MarketAxess Holdings Inc. reported its financial results for the first quarter of 2025, highlighting a mixed performance. The company exceeded earnings per share (EPS) expectations with $1.87, compared to the forecasted $1.80, but fell short on revenue, reporting $208.6 million against an expected $211.5 million. Despite the revenue shortfall, the company saw a significant year-over-year increase in total revenue, reaching $289 million from $210 million, with services revenue growing by 7% to $27 million. MarketAxess is also focusing on expanding its electronic trading solutions, with plans to launch the Midex solution for dealer-to-dealer trading, and anticipates revenue growth from the RFQ Hub by 15-20% in 2025. Analysts are closely monitoring the company’s pricing strategies and the growth of alternative liquidity providers. Additionally, MarketAxess has been active in share repurchases, buying back 251,000 shares through April 2025. The firm is also preparing for the consolidation of RFQ Hub, which will increase its ownership to approximately 90%.
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