Citigroup Initiates Coverage of Nasdaq; “Neutral” Rating (NDAQ)

By
A A A
Share |

Goldman Sachs has announced that they have initiated coverage of NASDAQ OMX Group, Inc.( NDAQ ) Monday.

The firm reported that they have initiated coverage on NDAQ with a rating of "Neutral," and a price target of $25. This price suggests a 2.9% increase over the stock's current price of $24.27. The stock has been mostly flat within the past year.

An analyst from the firm noted, "while we are intrigued by NDAQ's 9X 2013E P/E, solid free cash flow yield (12%), high levels of excess cash (9% of market cap) and a recurring revenue base (70% of total), we struggle to find a catalyst for NDAQ to re-rate higher without a change in the firm's capital deployment strategy."

Citigroup reported that the $1 billion in buybacks since 2009 have not paid off. They feel that a more aggressive dividend policy would benefit the shares.

Nasdaq shares were mostly flat during premarket trading Monday.

The Bottom Line
Shares of Nasdaq OMX Group ( NDAQ ) have a 2.14% dividend yield, based on Friday's closing stock price of $24.27. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$27 price levels.

NASDAQ OMX Group, Inc.( NDAQ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: NDAQ

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM