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On Wednesday, Barclays increased the price target on shares of Euronext NV (ENX:FP) (OTC: EUXTF) to €100, up from the previous target of €87, while maintaining an Equalweight rating. The revision comes as Euronext approaches its Investor Day in November, during which the company is expected to set more ambitious targets than its current 3-4% revenue compound annual growth rate (CAGR). The market consensus, according to Bloomberg, is anticipating a 5.5% CAGR for the period of 2023-2027.
Barclays notes that Euronext's growth narrative will likely hinge on the upcoming Investor Day presentations. The company's post-merger and acquisition (M&A) expansion into different product areas and the post-trade value chain presents opportunities for accelerated growth. However, compared to its peers, Euronext's track record for organic growth is less substantial, and the clarity on growth drivers is currently limited.
The analyst at Barclays highlighted that Euronext's stock is trading at multiples that are consistent with its long-term averages. This observation supports the firm's decision to maintain an Equalweight stance on the stock despite the raised price target. The new target reflects an increase of €13 from the former price target.
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