Nasdaq’s Stock (NDAQ) Raised to Buy, as Price Target Trimmed

Amid a backdrop of market volatility and concerns of a tech sell-off, Nasdaq's stock (NMS: NDAQ) received an upgrade from Redburn Atlantic, with the firm shifting their stance from Neutral to Buy, despite adjusting their price target slightly downward from $93 to $91.

Nasdaq's stock saw a 2% downturn in yesterday's session, yet currently trades at $72.10, representing a gain of 0.57% through pre-market trading.

Redburn Atlantic's upgrade is rooted in their belief that current market conditions have overshot in pricing in potential growth headwinds for Nasdaq. They identify the stock's current price as embodying expectations for meaningful obstacles, including tech weakness, a slow recovery in the initial public offering (IPO) market, and risks to the growth of Nasdaq's enterprise-facing software solutions.

Despite these perceived risks, Redburn sees an opportunity. They project that Nasdaq is well-positioned to deliver consistent double-digit earnings growth into the future. This investment firm's revised expectations accentuate Nasdaq's potential to capitalize on its longer-term structural growth opportunities, offering investors a more attractive entry point.

Overview & Recent Performance of Nasdaq Inc.

Nasdaq operates as a versatile technology company serving capital markets among other industries globally. The New York-based firm's services span across three major segments: Capital Access Platforms, Financial Technology, and Market Services, providing a broad range of products that include market data, index development, investor relations intelligence, and regulatory compliance solutions, among others .

Financially, Nasdaq is performing solidly, with a trailing P/E ratio of 37.14 and a more forward-looking P/E of 22.83. The company maintains a dividend rate of $0.96 with a subsequent yield of 1.34%, facilitating a reasonable payout ratio of about 48.7%. The firm posts a total revenue of $7.4 billion and a net income to common of approximately $1.117 billion .

The stock is heavily endorsed by institutional investors, with ownership amounting to 85.82%, and insiders holding a stake of 10.73%. This level of institutional backing indicates a strong vote of confidence in Nasdaq's enduring performance and strategy.

Based on the consolidated position of various analysts, the stock sustains an average price target of $83.06 with an overall recommendation mean that leans towards ‘buy', showcasing a positive attitude towards Nasdaq's prospects amidst an array of 18 analyst opinions .

In summary, Nasdaq's adjusted price target by Redburn Atlantic underscores solid confidence in the company's growth trajectory. With a ‘buy' rating now in place, Nasdaq is expected to maintain a robust performance in forthcoming quarters, notwithstanding present economic challenges.