Raymond James lifts Tradeweb stock target to $144, maintains Outperform

On Thursday, Raymond (NSE:RYMD) James updated its outlook on Tradeweb Markets (NASDAQ:TW), with analyst Patrick O’Shaughnessy increasing the price target to $144 from $141 while sustaining an Outperform rating on the company’s stock. The adjustment follows the company’s fourth-quarter earnings for the year 2024. According to InvestingPro data, analyst targets for the stock currently range from $100 to $201, reflecting diverse market perspectives on the company’s potential.

In his analysis, O’Shaughnessy noted that Tradeweb’s recent trading volumes have been strong, despite a slight deceleration from the exceptionally high levels experienced earlier in 2024. This performance is attributed to a favorable macroeconomic environment and significant market share gains in strategic product areas. The company’s robust performance is reflected in its impressive 29.4% revenue growth over the last twelve months, with InvestingPro data showing a "GREAT" overall financial health score.

Looking ahead, the analyst expressed confidence in Tradeweb’s potential for sustained growth across various macroeconomic scenarios. He anticipates that continued market share expansion in segments such as U.S. Treasuries, interest rate swaps, and U.S. corporate bonds will contribute to the company’s long-term revenue growth. The company’s strong financial position is evidenced by its healthy current ratio of 3.13, indicating solid liquidity to support growth initiatives.

The analyst’s perspective is further supported by Tradeweb’s current valuation. With the stock trading at approximately 32.5 times Raymond James’ estimated 2026 non-GAAP earnings per share, compared to the five-year next twelve months (NTM) average multiple of 40 times, O’Shaughnessy believes that the risk/reward profile for investors is compelling.

Tradeweb Markets, as a leading global operator of electronic marketplaces for rates, credit, equities, and money markets, stands to benefit from the ongoing digital transformation in financial trading and the analyst’s report underscores the firm’s robust positioning in the market.

In other recent news, Tradeweb Markets Inc . reported fourth quarter earnings that surpassed analyst estimates, though revenue was slightly below expectations. The company announced an adjusted earnings per share of $0.76 for Q4, outperforming the analyst consensus of $0.75. Revenue for the quarter tallied at $463.3 million, marking a 25.2% YoY increase, but fell slightly short of the $464.82 million analyst estimate.

Tradeweb also highlighted robust growth across its business segments. Rates revenue rose by 25.3% to $240.2 million, credit revenue increased by 8.9% to $113.6 million, and Money Markets revenue soared by 166.5% to $44.3 million. The company’s board declared a quarterly cash dividend of $0.12 per share, a 20% increase from the previous year.

Looking ahead, Tradeweb provided guidance for full-year 2025, projecting adjusted expenses of $970-1,030 million. These developments underscore the company’s recent performance and future expectations.

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