Goldman Sachs Praises Nasdaq OMX Group (NDAQ)

Goldman Sachs Group analysts Richard Ramsden, Brian Foran, Daniel Harris and Jessica Binder Graham reiterated their Conviction List Buy rating for shares of The Nasdaq OMX Group Inc NDAQ, with a price target of $25 per share. The analysts said that robust 2nd quarter equity and derivative trading volumes support their increased earnings estimates for The Nasdaq OMX Group Group Inc. They also said that changes that The Nasdaq OMX Group Inc made to its European operations are handling higher volatility and surging volume. The Goldman Sachs Group analysts wrote, "Positive view on NDAQ owes to the leverage of new initiatives, stable market share: As we note, near-term volume trends are not our fundamental thesis, but a nice support to our positive view on initiatives. We point to at least four initiatives that support our view on a strategic level: (1) new EU technology/clearing structure, (2) derivatives on new UK power market, (3) IDCG in the US for interest rate swaps, and (4) the $300 million announced share repurchase and debt retirement package. These initiatives lead to our 2010E-2012E CAGR of 15%, relative to a 9X current forward multiple and 11% operating free cash flow yield."