Goldman Sachs Reinstates NASDAQ At Buy

Goldman Sachs has a Buy rating and a $29 price target on shares of NASDAQ OMX Group NDAQ. In a note to clients, Goldman writes, "We have a Buy rating on NDAQ. NDAQ possesses the least leverage to transaction driven revenue but its businesses are competitive and it is forced to be more efficient than peers. Its results have positioned NDAQ to return most of its 10% operating cash flow yield to investors via niche acquisitions and buybacks. However, it has grown revenues at a 23% CAGR and EPS at a 9% CAGR since 2007, the second best rate among the group, yet has the lowest forward EPS multiple (10X) of any global peer. Our 2012-2013 estimates are 5-8% higher than consensus, and we expect shares to trade higher over the next 12-months should the Street move towards our number and NDAQ continues to return capital to shareholders." Shares of NDAQ lost 42 cents yesterday to close at $24.38.