Wells Fargo Upgrades NYX To Outperform

Wells Fargo is upgrading shares of NYSE Euronext (NYSE: NYX) to Outperform from Market Perform and are raising its valuation range to $40-
42 from $30-32.

“We are also increasing our 2012 EPS estimate to $2.95 from $2.87. Our revised valuation range is based on a 14x multiple on our new 2012 EPS estimate and suggests upside potential of 27% to the mid-point,” Wells Fargo writes. “Our upgrade of NYX is based on an improved outlook for revenue growth which should be supported by strength in technology services and better transaction volumes.

“While volatility in many of NYX's markets has declined, we are more optimistic about exchange volume overall given improvement in the global economy and the appearance of a more engaged retail investor.”

NYSE Euronext currently trades at $32.74.