Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Raymond (NSE:RYMD) James reaffirmed its positive stance on Nasdaq OMX Group Inc. (NASDAQ:NDAQ), maintaining an Outperform rating with a steady price target of $84.00. The stock, currently trading at $67.74, has experienced a notable 10.9% decline over the past week. According to InvestingPro data, the company's earnings report is scheduled for April 24, 2025. The financial firm stands firm on its outlook for Nasdaq as the company approaches its first-quarter earnings report.
Nasdaq is recognized for its robust collection of financial technology software businesses and a notably successful index franchise. The company has demonstrated strong financial performance with a 12% revenue CAGR over the past five years and maintains a solid dividend track record, having raised its dividend for 13 consecutive years according to InvestingPro. Despite facing challenges such as the impact of de-listings on legacy exchange revenues, Raymond James believes that Nasdaq has the capacity to withstand these issues.
The financial firm's analyst highlighted the growth potential and diversification of Nasdaq's business model, suggesting it warrants a higher valuation multiple. With Nasdaq's stock trading at approximately 19.5 times Raymond James' 2026 non-GAAP EPS estimate, the firm views the risk/reward balance as favorable for investors.
The outlook for Nasdaq remains optimistic in the eyes of Raymond James, as the firm anticipates that the company's diversified offerings will continue to drive its valuation. This endorsement comes as investors and the market await the forthcoming earnings report, which will offer further insight into Nasdaq's financial performance and strategic direction.
In other recent news, Nasdaq has been upgraded by Moody's Ratings to a Baa1 long-term issuer rating with a stable outlook, reflecting its increased scale and improved debt leverage following the acquisition of Adenza. Moody's highlights Nasdaq's strong recurring revenue from non-trading businesses and its robust market position. The credit rating agency anticipates further improvements in Nasdaq's debt leverage ratios by 2025 and 2026, assuming no additional debt-funded acquisitions. Additionally, Nasdaq has announced plans to open a new regional headquarters in Dallas, Texas, emphasizing its commitment to the Texas and Southeast U.S. market, where it generates significant revenue and collaborates with numerous clients.
Nasdaq has also secured its leadership team by finalizing new employment agreements with its top executives, including Chair and CEO Adena T. Friedman. These contracts extend their tenures and include provisions for severance and equity awards, ensuring leadership continuity. Furthermore, Nasdaq plans to introduce 24-hour trading on its equities exchange by the second half of 2026, pending regulatory approval, aligning with a broader industry trend. In another strategic move, Nasdaq has appointed Brandis DeSimone as Senior Vice President, Head of East Coast Listings, to strengthen its support for corporate clients and enhance client relations.
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