Deutsche Bank analysts upgraded Nasdaq OMX Group (NASDAQ:NDAQ) to Buy from Hold, raising the price target to $98 from $80 on the stock. The upgrade reflects increased confidence in Nasdaq’s ability to achieve consistent double-digit EPS growth over the 2025-2027 forecast horizon, distinguishing it from its peers in the securities exchange sector.
After several years of limited EPS expansion—6% growth in 2022 and 2023, and an anticipated sub-1% growth in 2024 due to initial dilution from the Adenza acquisition—Nasdaq is now positioned to accelerate its earnings trajectory. The Adenza deal, completed in late 2023, is expected to contribute meaningfully to Nasdaq’s financial performance over time, transitioning from a short-term drag to a long-term growth catalyst.
According to the analysts, this stronger growth outlook sets Nasdaq apart from its peers, who are projected to deliver only single-digit EPS growth through at least 2025 and 2026. The differentiated profile underscores Nasdaq’s strategic advantages and positions it as an attractive investment opportunity in the exchange sector.