UPDATE: Jefferies Downgrades Nasdaq OMX Group To Hold From Buy

Nasdaq OMX Group NDAQ shares are within 3% of the price target and believe the current valuation adequately reflects the prospects for the core business. Following the recent stock move combined with the uncertainty of the joint proposal for NYX, Jefferies believes the risk/reward in the shares is fairly balanced. Following the 12%+ move in NDAQ shares last week, Jefferies believes the shares are currently fairly valued. On a stand-alone basis NDAQ shares are within 3% of the target price. Factoring in the proposed transaction with NYX Jefferies believes the shares have between 5-10% upside based on the current proposed terms. However, if they are unsuccessful in completing this transaction and/or they have to improve the proposed terms, Jefferies believes there is a similar amount of downside in the shares. As Jefferies looks at the current landscape within the exchange industry it believes there are more attractive investment opportunities, specifically CME Group. Jefferies has a $29 PT on NDAQ NDAQ closed Friday at $28.23