NEW YORK (TheStreet) -- Intercontinental Exchange (ICE) stock has been downgraded to "market perform" from "outperform," Wells Fargo said Tuesday. The firm said the company lacks near-term catalysts and could struggle to meet consensus expectations.
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Separately, TheStreet Ratings team rates INTERCONTINENTAL EXCHANGE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERCONTINENTAL EXCHANGE (ICE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ICE's very impressive revenue growth greatly exceeded the industry average of 3.6%. Since the same quarter one year prior, revenues leaped by 240.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 93.4% when compared to the same quarter one year prior, rising from $135.44 million to $262.00 million.
- Net operating cash flow has significantly increased by 245.41% to $519.00 million when compared to the same quarter last year. In addition, INTERCONTINENTAL EXCHANGE has also vastly surpassed the industry average cash flow growth rate of -18.60%.
- The gross profit margin for INTERCONTINENTAL EXCHANGE is rather high; currently it is at 58.60%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ICE's net profit margin of 21.86% significantly outperformed against the industry.
- You can view the full analysis from the report here: ICE Ratings Report