Nasdaq OMX Group’s target price was raised by Oppenheimer to an Outperform rating by Investing.com
Oppenheimer maintained its Outperform rating on Nasdaq OMX Group Inc. (NASDAQ: NDAQ ) and raised its price target to $80.00 from $78.00 previously.
The correction comes after Nasdaq disclosed more information about AxiomSL’s revenue-related accounting changes on September 6.
The new calculation method will allow AxiomSL’s revenue to closely match the Annual Recurring Revenue (ARR) and financial economics of its building subscription contracts.
Nasdaq will now recognize AxiomSL’s subscription revenue earned on a prem basis, as opposed to the previous approach of recognizing 50% upfront and the remainder during the term of the contract.
Additionally, Nasdaq is scheduled to record a one-time, non-GAAP charge of $32 million in the third quarter of 2024. Despite this downgrade, the company’s medium-term growth outlook remains unchanged.
By 2024, Nasdaq’s Regulatory Technology (RegTech) revenue growth is expected to be at the lower end of its mid-term guidance, which predicts high double- to double-digit growth. This projection accounts for the expected negative growth in professional services fees.
As a result of this development, Oppenheimer revised its ratings but decided to increase the target price of Nasdaq OMX Group due to the treatment.
InvestingPro Insights
Following Oppenheimer’s positive outlook on Nasdaq OMX Group Inc. (NASDAQ: NDAQ), InvestingPro’s data and tips provide more context for investors considering the stock. With a market capitalization of $41.44 billion and a high P/E ratio of 41.25, the Nasdaq trades at a premium relative to its peers. This is further emphasized by the adjusted P/E ratio for the last twelve months from Q2 2024, which stands at 36.58. Despite analysts expecting a decline in sales this year, the company showed solidity with a gross margin of 66.0% and an operating income ratio of 29.01% during the same period.
InvestingPro Tips highlights that the Nasdaq has increased its dividend for 12 consecutive years, which speaks to the company’s commitment to providing shareholder value. Additionally, the stock is trading near its 52-week high, priced at 97.01% of the high, indicating strong investor confidence. Over the past three months, the stock has seen a strong return of 22.9%, and over the past five years, it has maintained a strong performance. For investors looking for more insight, there are additional InvestingPro Tips available that can provide in-depth analysis of the Nasdaq’s financial health and future prospects.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
