Wells Fargo Upgrades NASDAQ OMX Group to “Outperform” (NDAQ)
On Friday, Wells Fargo analysts upgraded stock exchange operator NASDAQ OMX Group, Inc. (NDAQ), citing catalysts for potential growth as one reason for the bullish view.
The analysts upgraded NASDAQ from “Market Perform” to “Outperform.” The firm also raised NASDAQ’s valuation range from $28-$31 to $38-$42. This new valuation range suggests about a 23% upside to Thursday’s closing price of $32.60.
This updated bullish view “is driven by a relatively strong EPS outlook, continued investor appreciation for the nontrading businesses and multiple expansion which we think could accelerate if the ICE/NYX merger is consummated.”
Though the analysts cut the 2013 EPS estimate from $2.82 to $2.76, Wells Fargo did boost NASDAQ’s 2014 EPS estimate to $3.20 from $3.15. The new valuation range is based on a 13x multiple of the new 2014 EPS estimate.
NASDAQ shares were inactive during pre-market trading on Friday. The stock is up +24.76% over the past twelve months.
The Bottom Line
Shares of NASDAQ (NDAQ) have a dividend yield of 1.60% based on last night’s closing price of $32.60 and the company’s annualized dividend payout of 52 cents per share.
NASDAQ OMX Group, Inc. (NDAQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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