Sector Snap: Stock exchanges

KBW analyst expects stock exchange execs to be optimistic when they report 2Q results

Associated Press

NEW YORK (AP) -- A Keefe, Bruyette & Woods analyst said Tuesday that she expects executives of stock and other exchanges to be "cautiously upbeat" about the future when they report their second-quarter results.

Niamh Alexander said that volatility in the capital markets prompted investors to reposition their investments during the recent quarter, boosting income for the markets who make more money off of higher trading volumes.

"The big run may be done but as we move to price off our new 2015 estimates we still see upside for some," Alexander wrote in a note to investors.

The analyst boosted her rating for NYSE Euronext Inc. to "Outperform" from "Market Perform" and increased her price target for commodities marketplace IntercontinentalExchange Inc., which is acquiring NYSE Euronext and is already rated at "Outperform," by $27 to $225.

Alexander also backed "Outperform" ratings for Investment Technology Group Inc., a financial technology firm, and GFI Group Inc., a derivatives and currency broker.

In afternoon trading, NYSE Euronext shares fell a penny, to $41.99; IntercontinentalExchange dropped 35 cents to $181.51; Investment Technology fell 40 cents, or 2.6 percent, to $15.09 and GFI Group rose 1 cent to $4.37.

Elsewhere in the sector, CBOE Holdings Inc. rose 33 cents to $47.94; NASDAQ OMX Group Inc. fell 48 cents to $33.66; CME Group Inc. fell 67 cents to $76.46 and MarketAxess Holdings Inc. rose 29 cents to $50.99.

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