Index falls as earnings results weigh; pound above $1.33, Bodycote soars
Investing.com - RBC Capital has raised its price target on Nasdaq OMX Group Inc. (NASDAQ:NDAQ) to $108.00 from $95.00 while maintaining an Outperform rating on the stock. The stock, currently trading at $94.84 and near its 52-week high of $95.49, has delivered impressive returns with a 43.45% gain over the past year. According to InvestingPro data, 15 analysts have recently revised their earnings estimates upward for the upcoming period.
The firm cited solid new wins along with cross-sell and up-sell momentum despite macroeconomic uncertainty as factors setting the stage for improvements in sales performance, which should accelerate Annual Recurring Revenue (ARR) growth. This optimism is supported by Nasdaq’s strong revenue growth of 23.57% over the last twelve months, with the company maintaining a healthy 60.6% gross profit margin.
RBC Capital specifically noted three Enterprise Verafin deals, robust ARR contributions from Capital Markets Technology, and regulatory clarity that position FinTech ARR for accelerated growth in the fourth quarter of 2025 and into 2026.
The firm also observed that Capital Access Platform ARR has strengthened, supported by broad-based momentum in Data/Listing and Workflow Solutions.
RBC Capital added that the market rally should bolster Index growth, while a recovery in IPO activity should contribute to mid-term growth in Listing and Corporate Solutions.
In other recent news, Nasdaq Inc. reported its second-quarter 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company achieved an EPS of $0.85, exceeding the anticipated $0.81, and generated revenue of $1.31 billion, above the forecasted $1.28 billion. UBS upgraded Nasdaq from Neutral to Buy, raising its price target to $115.00, citing strong execution and leading solutions growth projected at 9.4% this year. Raymond (NSE:RYMD) James also adjusted its price target for Nasdaq to $99.00 from $96.00, maintaining an Outperform rating. This decision was influenced by Nasdaq’s robust collection of financial technology software businesses and its notable index franchise. These developments reflect growing confidence among analysts regarding Nasdaq’s performance and growth potential.
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