Jefferies Raises PT On Intercontinental Exchange To $130 (ICE)

Jefferies is reporting Intercontinental Exchange ICE beat Q4 estimates and raised Price Target to $130 from $120. “ICE reported 4Q10 non-GAAP EPS of $1.35, $0.04 above our estimate and $0.02 above consensus,” the report notes. “Total revenues of $285M, were $4.2M ahead of our estimate but were offset by approx. $1.5M in additional expenses, which totaled $125M. As a result, operating margins were only modestly better than our estimate (56.1% vs 55.9%). For the full year, revenues were up 16% to $1.15B.” Jefferies also notes, “2011 is off to a robust start as the economic rebound is leading to increased global consumption of commodities and abnormal weather patterns around the globe are creating volatility in agricultural products. Year-to-date futures volumes are up over 30% y/y and ICE's OTC ADC are up approx. 15% y/y. In addition to the aforementioned macro factors, management also highlighted a growing customer base across its product set that is also contributing to growth.” Jefferies reaffirmed Intercontinental Exchange's Hold rating. Shares of Intercontinental Exchange are currently trading $1.59 up from yesterday's close of $123.13.