Raymond James reiterates Market Perform rating on MarketAxess stock

Investing.com - Raymond (NSE:RYMD) James maintained its Market Perform rating on MarketAxess (NASDAQ:MKTX) ahead of the company’s second-quarter 2025 earnings results, due on July 16. According to InvestingPro data, the company maintains a "Good" financial health score and has been consistently profitable over the last twelve months.

The firm acknowledged a positive inflection in MarketAxess’s near-term U.S. high-grade market share but considers the company a "show-me story" that needs to demonstrate sustained momentum across various market conditions. Trading at a P/E ratio of 37.7x and having maintained dividend payments for 17 consecutive years, the stock currently offers a 1.4% dividend yield.

Raymond James noted that while MarketAxess has developed a comprehensive plan to address multiple opportunities, the firm believes successfully creating solutions for client liquidity challenges that clients willingly adopt remains challenging.

The research firm expressed its comfort with maintaining a sideline position on MarketAxess until evidence emerges of renewed and sustainable market share success.

MarketAxess operates electronic trading platforms for fixed-income securities and provides market data and post-trade services for the global fixed-income markets.

In other recent news, MarketAxess Holdings Inc. reported record trading volumes for the second quarter of 2025, with an average daily volume reaching $49 billion, marking a 43% increase from the previous year. The company saw significant growth across various trading categories, including a 58% rise in total rates ADV and a 22% increase in total credit ADV. In addition, MarketAxess announced the acquisition of a 90% majority stake in the RFQ-hub platform, which is expected to enhance their global expansion efforts, particularly in equity and fixed-income derivatives. On the personnel front, Dean Berry was appointed as Group Chief Operating Officer and CEO for the EMEA and APAC regions, aiming to bolster the company’s operational efficiency. Keefe, Bruyette & Woods recently raised MarketAxess’s stock price target to $226, maintaining a Market Perform rating, following an earnings report that beat expectations with a $0.06 EPS surplus. However, the company’s revenue fell short of forecasts, coming in at $208.6 million compared to the anticipated $211.5 million. These developments reflect MarketAxess’s ongoing strategic initiatives and market performance adjustments.

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