In a report published Friday, BGB Securities reiterated its Buy rating and $150.00 price target on IntercontinentalExchange ICE.
BGB Securities noted, “On first pass, our $150 target a minimum value for ICE/NYX Yesterday morning IntercontinentalExchange (ICE) announced a definitive agreement to purchase NYSE Euronext (NYX, NR, $32.25) in a fixed-ratio stock-and-cash deal valued at 8.2bn at announcement. Consideration is 67% ICE shares and 33% cash; NYX shareholders have the option to receive all cash, all stock or a mix with a maximum of ~42.5 shares to be issued. NYX shareholders will own approximately 36% of ICE post-transaction, expected to close in 2H13. The deal is expected to prove 15% accretive prior to an expected $450mn in cost saves (or, for reference, one quarter's worth of costs at the big board). Our back-of-the-envelope math (below) supports our current price target as a base. We maintain our BUY.”
IntercontinentalExchange closed on Thursday at $130.10.
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