Demystifying Nasdaq: Insights From 14 Analyst Reviews

In the preceding three months, 14 analysts have released ratings for Nasdaq NDAQ, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 10 2 0 0
Last 30D 1 0 0 0 0
1M Ago 0 2 0 0 0
2M Ago 0 1 1 0 0
3M Ago 1 7 1 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $87.71, a high estimate of $98.00, and a low estimate of $80.00. Witnessing a positive shift, the current average has risen by 4.7% from the previous average price target of $83.77.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Nasdaq. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brian Bedell Deutsche Bank Raises Buy $98.00 $80.00
Kyle Voigt Keefe, Bruyette & Woods Raises Outperform $91.00 $86.00
Benjamin Budish Barclays Raises Overweight $97.00 $87.00
Ashish Sabadra RBC Capital Maintains Outperform $88.00 $88.00
Brian Bedell Deutsche Bank Raises Hold $80.00 $78.00
Kevin Heal Argus Research Raises Buy $82.00 $76.00
Bill Katz TD Cowen Lowers Hold $80.00 $81.00
Benjamin Budish Barclays Raises Overweight $87.00 $84.00
Ashish Sabadra RBC Capital Maintains Outperform $88.00 $88.00
Owen Lau Oppenheimer Raises Outperform $86.00 $84.00
Michael Cyprys Morgan Stanley Raises Overweight $93.00 $92.00
Michael Cyprys Morgan Stanley Raises Overweight $92.00 $85.00
Patrick O'Shaughnessy Raymond James Announces Outperform $82.00 -
Owen Lau Oppenheimer Raises Outperform $84.00 $80.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Nasdaq. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Nasdaq compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Nasdaq's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Nasdaq's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Nasdaq analyst ratings.

Delving into Nasdaq's Background

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.

Nasdaq's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Nasdaq displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 31.08%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Nasdaq's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 16.09%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Nasdaq's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.79%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Nasdaq's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.01%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.93, Nasdaq faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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