Thursday, analysts at BofA Securities increased their price target for Euronext NV (ENX:FP) (OTC: EUXTF) shares to €105.00 from €103.00, while reaffirming a Buy rating on the stock. The adjustment follows Euronext's robust financial performance in the first quarter of 2024.
The firm's revised price objective comes with an uplift in the 2024 cash earnings per share (EPS) estimate by 6%, attributed to a 2% rise in revenues and more efficient cost management than previously anticipated.
Euronext's earnings for the first quarter demonstrated resilience in volume trends, prompting BofA Securities to project operating expenses for 2024 at €615 million, which is 2% lower than the company's own guidance of €625 million. The previous estimate by the firm was €620 million.
The updated forecasts suggest that Euronext is on track to reach the upper end of its 2020-2024 guidance, with a compound annual growth rate (CAGR) in revenue of 4% against a target range of 3-4%, and an EBITDA growth of 6%, compared to the targeted 5-6%.
The analysts underscored Euronext's position as a leading entity in European listing and cash execution markets. They also emphasized the potential value arising from Euronext's integrated listed derivatives business and its capital management flexibility.
With the 2025 estimated cash price-to-earnings (PE) ratio standing at 13 times, BofA Securities views Euronext's stock as undervalued, suggesting a promising investment opportunity.
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