The network of regulated exchanges and clearing houses for financial and commodity markets demonstrates solid growth but less upside, analysts said.
"Amid integration of NYX, ICE remains a solid EPS growth story with substantial cost takeout, continued exchange franchise build via acquisitions and organic initiatives, and strong free cash flow generation," analysts said.
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"However, with ICE shares up 12% since our October 1 upgrade, we think the NYX expense saves and revenue synergies are now largely factored into the valuation and we view further major upside in the shares as more dependent upon volume growth (in what remains a less volume centric story than peers CME)," analysts added.
Shares of Intercontinental Exchange closed down 0.02% at $217.42 yesterday.
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 several positive factors, 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, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."