Nasdaq stock upgraded to Buy at UBS on strong solutions growth

Published 25/07/2025, 10:06
Nasdaq stock upgraded to Buy at UBS on strong solutions growth

Investing.com - UBS upgraded Nasdaq OMX Group Inc. (NASDAQ:NDAQ) from Neutral to Buy and raised its price target to $115.00 from $95.00 on Friday. The stock, currently trading near its 52-week high of $95.49, has delivered an impressive 21.72% return year-to-date, according to InvestingPro data.

The upgrade comes as UBS cited strong execution and peer-group leading solutions growth, which it forecasts at 9.4% this year, creating a path for Nasdaq’s valuation to move closer to information services peers. With a market capitalization of $53.68 billion and 13 consecutive years of dividend increases, Nasdaq has demonstrated consistent shareholder value creation.

UBS also increased its earnings per share estimates for Nasdaq, raising them by 4% for fiscal year 2025 and 3% for fiscal year 2026, partially driven by an improving capital markets environment.

The firm noted strong sales activity and healthy pipelines that set the stage for continued strength in 2026 for the exchange operator.

UBS added that an eventual recovery in listings represents incremental upside potential for Nasdaq beyond its current projections.

In other recent news, Nasdaq Inc. reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company posted an earnings per share (EPS) of $0.85, surpassing the anticipated $0.81, and achieved a revenue of $1.31 billion, above the forecasted $1.28 billion. Following the earnings announcement, Raymond (NSE:RYMD) James adjusted its price target for Nasdaq to $99 from $96, maintaining an Outperform rating. The firm highlighted Nasdaq’s strong collection of financial technology software businesses and its robust index franchise as key factors for the rating. These developments reflect positively on Nasdaq’s recent performance and strategic positioning.

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