Sector Snap: Exchange Operators

Analysts polled by Thomson Reuters, on average, forecast earnings of $1.88 per share for 2009 and $2.11 per share for 2010.

Aside from the sector downgrade, Vinciquerra cut his individual rating on NYSE Euronext, which was one of the few exchange operators to decline Thursday.

Shares of NYSE Euronext fell 65 cents, or 2.2 percent, to $29.16. Shares have traded between $14.52 and $62.95 during the past year.

Vinciquerra cut his rating on NYSE Euronext to "Underperform" from "Market Perform." In a research note, he said he cut the rating because, after a recent rally, shares trade at a "significant multiple premium to its closest peer despite what we consider to be relatively similar growth prospects." Nasdaq OMX Group is considered its closest peer and NYSE Euronext should not be trading at a much higher premium, Vinciquerra said.

NYSE Euronext also is unlikely to generate strong revenue growth in the near future as it faces increased competition and pricing pressure in the U.S. market and its European derivatives exchanges, Vinciquerra said.

Despite the downgrade, Vinciquerra did increase his earnings estimates for NYSE Euronext to $1.76 per share in 2009 from $1.73 per share and $2.29 per share for 2010 from $2.24 per share. The increased earnings estimate is tied to an increase in overall U.S. equity and options volume assumptions.