The Dividend Daily

Stock exchange operator NYSE Euronext (NYX) on Monday saw its coverage re-initiated with a “Conviction Buy” List rating by analysts at Goldman Sachs.

The firm also set a $29 price target on the stock, suggesting a 17% upside to the stock’s Friday closing price of $24.41.

A Goldman analyst commented, “NYX’s cost rationalization program and more efficient uses of excess capital via both buybacks and deleveraging should result in a 20% EPS CAGR over the next three years even without any assumptions for revenue improvement.” Continuing, “Although we see plenty of reasons to expect a choppy cyclical operating environment (anemic equity volumes, declining open interest in rates and equities futures businesses in Europe, new regulatory scrutiny on HFT), we think the firm’s 5% dividend yield and a 12% FCF yield provide plenty of downside support.”

NYSE Euronext shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of NYSE Euronext (NYX) have a 4.92% dividend yield, based on Friday’s closing stock price of $24.41. The stock has technical support in the $20-$21 price area. If the shares can firm up, we see overhead resistance around the $27 price level.

NYSE Euronext (NYX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.