Raymond James maintains ICE stock Outperform rating, $195 target

Published 03/04/2025, 16:06
Raymond James maintains ICE stock Outperform rating, $195 target

On Thursday, Raymond (NSE:RYMD) James analyst Patrick O’Shaughnessy confirmed the Outperform rating and $195.00 price target for Intercontinental Exchange (NYSE:ICE), highlighting the company’s robust Exchange results driven by high energy volatility and strategic positioning. According to InvestingPro data, analyst targets range from $158 to $230, with ICE showing impressive 25.5% returns over the past year. O’Shaughnessy noted that despite challenges in the Mortgage Tech segment, Intercontinental Exchange is poised to benefit from a normalization in origination activity.

Intercontinental Exchange, a leading operator of global exchanges and clearing houses with a market capitalization of $97.5 billion, has been experiencing very strong results in its Exchange business, attributed to the heightened energy market volatility. The company’s success is reflected in its 16.2% revenue growth over the last twelve months. The analyst emphasized that the company’s strategic moves are paying off, positioning it for continued success.

However, the Mortgage Tech segment of Intercontinental Exchange is currently facing headwinds due to lower origination activity and the loss of some clients. Despite these challenges, Raymond James remains confident in the company’s ability to recover as market conditions improve. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.

The firm’s diversified business model, described by O’Shaughnessy as a "three-pronged platform," is expected to support revenue and EPS growth across various market conditions. This diversified approach is seen as a key strength for Intercontinental Exchange.

With shares of Intercontinental Exchange trading at approximately 23 times Raymond James’ 2026 non-GAAP EPS estimate, the firm regards the risk/reward balance as attractive. This valuation reflects confidence in the company’s long-term growth prospects and its ability to navigate through the current challenges in the Mortgage Tech segment.

In other recent news, Intercontinental Exchange, Inc. (ICE) reported a record-breaking first quarter in 2025, with the highest trading volumes in its history across various asset classes, including global commodities, energy, and financials. The company’s average daily volume surged by 31% year-over-year in March, with significant growth noted in the energy sector. Additionally, ICE announced the launch of NYSE Texas, a new securities exchange, marking the first of its kind in the state. The exchange aims to leverage Texas’s robust economy to attract companies, with Trump Media & Technology Group being the inaugural listing.

Furthermore, ICE has expanded its Canadian bond data services through a partnership with CanDeal DNA, providing clients with intraday updates for Canadian securities. This collaboration aims to offer more frequent and detailed market insights. In analyst news, TD Cowen raised its price target for ICE shares from $171 to $191, maintaining a Buy rating following stronger-than-expected fourth-quarter results for 2024 and positive guidance for 2025. The analyst highlighted ICE’s earnings per share and revenue figures surpassing expectations, emphasizing a favorable environment for the company. These developments underscore ICE’s ongoing efforts to enhance its market offerings and strengthen its position in the financial sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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