Are Wall Street Analysts Bullish on Nasdaq Stock?
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New York-based Nasdaq, Inc. (NDAQ) operates as a leading provider of trading, clearing, marketplace technology, securities listing, information, and other services. With a market cap of $55.6 billion, Nasdaq operates through Capital Access Platforms, Financial Technology, and Market Services segments.
The company has significantly outperformed the broader market over the past year. NDAQ stock has soared 42.3% over the past 52 weeks and 25.3% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 20.1% surge over the past year and 8.6% returns on a YTD basis.
Narrowing the focus, Nasdaq has also outperformed the Financial Select Sector SPDR Fund’s (XLF) 22.8% gains over the past year and 7.3% returns on a YTD basis.
Nasdaq’s stock prices surged 5.9% in the trading session following the release of its impressive Q2 results on Jul. 24. Driven by solid organic growth, the company’s revenues net of transaction expenses surged 12.7% year-over-year to $1.3 billion, beating the consensus estimates by a notable margin. Furthermore, driven by continued improvement in margins, its non-GAAP net earnings for the quarter grew 23.9% year-over-year to $492 million, and adjusted EPS of $0.85, surpassed the Street’s expectations by 6.3%.
For the full fiscal 2025, ending in December, analysts expect NDAQ to deliver an adjusted EPS of $3.30, up 17% year-over-year. The company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock has a consensus “Strong Buy” rating overall. Of the 20 analysts covering the stock, opinions include 13 “Strong Buys,” three “Moderate Buys,” and four “Holds.”
This configuration is slightly more optimistic than a month ago, when 12 analysts gave “Strong Buy” recommendations and the stock had a consensus “Moderate Buy” rating overall.
On Aug. 4, Piper Sandler analyst Richard Repetto maintained an “Overweight” rating and raised the price target from $97 to $104.
NDAQ’s mean price target of $103.17 represents a 6.5% premium to current price levels. Meanwhile, the street-high target of $115 suggests a notable upside potential of 18.7%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.