Ahead of the Bell: NYSE Euronext gets Deutsche Bank upgrade
NEW YORK—NYSE Euronext Inc. received an upgrade from a Deutsche Bank analyst Wednesday, a day after the stock exchange operator said its first-quarter profit more than tripled.
Deutsche Bank analyst Rob Rutschow raised his rating to "Buy" from "Hold" and his price target to $86 from $77.
The new target implies he expects shares to rise about 18 percent over Tuesday's $72.95 close.
"We felt that the first quarter finally gave evidence of some merger synergies," Rutschow said in a note to clients. NYSE Euronext was formed last year by the combination of NYSE Group Inc. and Euronext NV.
Marketing costs dropped during the period and personnel expenses rose modestly, he said. Going forward, a voluntary retirement plan may yield benefits in the second or third quarters, he said.
Meanwhile, BMO Capital Markets analyst Michael Vinciquerra kept a "Market Perform" rating and $80 price target on NYSE Euronext, but raised his 2008 earnings estimate to $3.66 per share from $3.55 per share.
"It's challenging to read a lot into the quarter as many moving parts remain in the company's financial model," Vinciquerra said in a client note.
While investors seem convinced the combination is working, the company's U.S. equity business continues to lose market share, he said.
Shares of NYSE Euronext rose 72 cents to $73.67 in premarket trading.
rising
falling 