Jefferies Announces Lower Estimates On NYX

Jefferies has announced that it has lowered EPS estimates on NYSE Euronext NYX, from $0.66 to $0.63, based upon the NYX board's rejection of an offer from NDAQ [NASDAQ OMX Group]/ICE [IntercontinentalExchange Inc] and also last weeks release of March metrics. Said Jefferies, in the report, “The change is primarily due to a decrease in net trading revenues resulting from weaker than anticipated cash equity volumes and modestly lower derivatives volumes. Our new estimate for net revenue is $682M, down from $693M previously. Nevertheless, we are anticipating an approximate 400 bps q/q improvement in operating margins given the company's operating leverage and the relative weakness in trading volumes last quarter.” Jefferies maintains a Hold rating and a PT of $39 on the stock. NYX closed Friday at $38.70.