NYSE Euronext (NYX) - Bear of the Day

By
A A A

NYSE Euronext's ( NYX ) third quarter earnings plunged year over year based on weak volumes and pricing across trading venues, which led to a reduced top line and lower operating margin. However, while low cash position and high debt raised the concerns of rating agencies, capital deployment remained intact.

The launch of NYPC platform, new data centers and IRS derivatives on U.S. Liffe boost long-term revenue opportunities. NYSE aims to further augment long-term growth strategies by developing a clearing house in Europe, enhancing technology and risk-management services and global expansion, among others. But these initiatives carry an initial cost and regulation burden.

Our six-month target price of $22.00 equates to about 11.7x our earnings estimate for 2012. With an annual dividend of $1.20, this price target implies a negative total return of 6.9% over that period. This is consistent with our long-term Underperform recommendation on the shares.

NYSE EURONEXT (NYX): Free Stock Analysis Report

To read this article on Zacks.com click 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.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: NYX

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

139,392,686
  • $5.41 ▼ 18.52%
108,086,733
  • $17.04 ▲ 1.61%
88,411,032
  • $42.085 ▼ 1.19%
35,897,863
  • $101.79 ▲ 0.21%
34,635,836
  • $46.68 ▲ 0.34%
31,162,075
  • $4.36 ▲ 12.37%
31,086,421
  • $26.21 ▲ 0.61%
30,930,862
  • $17.09 ▼ 2.95%
As of 9/18/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com