J.P Morgan Comments On Intercontinental Exchange; Raises PT To $142

J.P Morgan is maintaining its Overweight rating on The Intercontinental Exchange ICE and is raising estimates and price target from $140 to $142. While trading volume in all of its major products has risen following recent global events, including the crisis in North Africa and the Middle East and the tragedy in Japan, J.P Morgan's research indicates that much of the volatility-driven volume that could be perceived as temporary, may last for some time. J.P Morgan believes that oil's breakout from its 18-month trading range, rather than the Middle East crisis, is the bigger driver of recent trading volumes. Here the data suggest that the surge in oil trading volume started before the Middle East crisis. If valid, it suggests that even if geopolitical issues in the Middle East calm, oil trading volume can remain high as hedgers and speculators reengage at the new price of oil. In Europe, a German nuclear energy review has sent European and emissions volumes soaring, with the potential for more than just near term implications in J.P Morgan's view. In Asia, the trading of coal is rising on speculation that the perception of nuclear power could shift. ICE closed Friday at $127.98