Tradeweb Markets stock rating reaffirmed at Buy by UBS despite volume miss

Published 08/07/2025, 16:04
Tradeweb Markets stock rating reaffirmed at Buy by UBS despite volume miss

Investing.com - UBS has reaffirmed its Buy rating and $155.00 price target on Tradeweb Markets (NASDAQ:TW) following the company’s June metrics release. According to InvestingPro data, the company, currently valued at $31.73 billion, is trading above its Fair Value, with a P/E ratio of 55.38.

UBS lowered its second-quarter 2025 earnings per share estimate to $0.84 from $0.88, below the Street consensus of $0.86, citing lower-than-expected credit and rates volumes.

Trading activity for the quarter increased 33% year-over-year, driven primarily by Rates, Credit, and Money Market products, but fell 6% short of UBS’s expectations.

The firm reduced its quarterly revenue estimate by 2%, now projecting 20% year-over-year growth, with the largest decreases in Rates and Credit revenues.

Despite these adjustments, UBS maintains a positive outlook on Tradeweb Markets, citing solid growth, potential cyclical upside, and the company’s continued innovation in market electronification.

In other recent news, Tradeweb Markets reported a significant increase in trading volume, with average daily volume (ADV) reaching $2.6 trillion in the second quarter, marking a 32.7% year-over-year growth. This impressive performance was attributed to increased client engagement and market volatility. Additionally, the company launched direct U.S. Treasury bill trading for corporate treasurers, enhancing their cash management capabilities. Tradeweb’s recent acquisition of Institutional Cash Distributors (ICD) has facilitated this new offering, aiming to integrate corporate treasury workflows across its platforms. Analyst firms have taken note, with Citi reiterating a Buy rating and a price target of $165, citing the company’s long-term growth opportunities. Raymond (NSE:RYMD) James also raised its price target to $156, highlighting Tradeweb’s solid growth prospects in various macroeconomic conditions. The company’s credit trading segment showed notable performance, with U.S. credit ADV increasing by 14.1% in June. Tradeweb’s repo trading also saw a substantial rise, supported by the Federal Reserve’s balance sheet reduction. These developments reflect Tradeweb’s strategic initiatives and market dynamics that continue to drive its growth.

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