Citi analysts reduced their price target on MarketAxess (NASDAQ:MKTX) to $330.00 from $415.00 while maintaining a Buy rating. The analysts also initiated a 30-day negative catalyst watch ahead of the release of June/Q2 metrics. Shares fell around 2% intra-day today.
According to the analysts, their estimates have been updated to reflect revised volume assumptions. The revised Q2/23 EPS estimate is $1.56, which is 11% below consensus. The company has been under pressure due to volume trends, and considering the magnitude of the expected revision, there is a potential for further downside in the near term.
However, the analysts believe that Q2 could represent a low point in terms of volumes/FPM, and the outlook for H2/23 is more positive. This is based on the expectation of more consistent issuance trends and potentially increased spread volatility.
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