On Monday, Deutsche Bank increased the price target for Euronext NV (ENX:FP) (OTC: EUXTF) to EUR106 from EUR104, while maintaining a Buy rating on the stock. The adjustment follows Euronext's announcement of robust second-quarter results for 2024, which showcased a notable 12% year-over-year organic revenue growth and a 350 basis points expansion in EBITDA margin from the same period last year.
Euronext's recent performance has been bolstered by the successful integration of Borsa Italiana, with the final significant phase expected to be the migration of financial derivatives in September. This development is set to enhance the company's business profile and strategic opportunities, which will be further discussed during its Investor Day in November.
The financial institution has reaffirmed its Buy rating for Euronext, citing strong near-term revenue momentum and the anticipation of an upward revision in mid-term growth guidance at the upcoming Investor Day. The price target increase to EUR106 reflects modest upgrades in revenue forecasts, underscoring confidence in the stock's future performance.
Euronext's current valuation is considered very attractive by the analyst, trading at 13.4 times its estimated earnings per share (EPS) for 2025 and 12 times its estimated enterprise value (EV) to EBIT for the same year. This valuation is reported to be significantly lower than that of its industry peers.
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