This Tradeweb Markets Analyst Remains Bullish About Organic Growth, Raises Forecast

Tradeweb Markets Inc's TW industry leading organic growth is likely to continue, despite tough comps, according to Goldman Sachs.

The Tradeweb Markets Analyst: Analyst Alexander Blostein reaffirmed a Buy rating, while raising the price target from $145 to $152.

The Tradeweb Markets Thesis: The company is likely to generate mid-teen revenue growth through 2027, Blostein said in the note.

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Rates is likely to account for 60% of the company's revenue growth over the next several years, he added.

"We see higher industry volumes amid rising Treasury issuance and increased activity down the curve supporting a 10%-12% growth backdrop for industry volumes, with TW's share gain opportunities and positive mix shift, particularly in Swaps (much faster growth in Risk trades vs. Compression trades, duration extension and EM) driving above-consensus revenue growth for this business," the analyst wrote.

Although Credit, which is Tradeweb Markets' second-largest business, is likely to face heightened competition over time, the flagship Portfolio Trading offering "is proving out to be more resilient than perceived," which could support further share gains, he further stated.

Price Action: Shares of Tradeweb Markets had risen by 3.18% to $140.12 at the time of publication on Monday.

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• Forecasting The Future: 6 Analyst Projections For Tradeweb Markets

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