Deutsche Bank Upgrades IntercontinentalExchange (ICE) to Buy

Deutsche Bank upgraded IntercontinentalExchange (NYSE: ICE) from Hold to Buy with a price target of $252.00 (from $247.00). Analyst Brian Bedell noted recent underperformance.

"With ICE shares underperforming peers CME & NDAQ by nearly 1,000bps since its 3Q14 earnings report & it’s relative forward P/E compressing from ~30% premium to S&P 500 to ~10% premium (while peer exchanges’ P/Es expanded), we now see the valuation as more reasonable & believe the shares can appreciate near pace of EPS growth (we estimate ~15% in 2016). Moreover, energy futures volumes are proving more durable at lower crude oil prices amid elevated volatility, and we view our prior volume forecasts in energy as too conservative. ICE is also a solid longer-term free cash flow story & we see good risk/return in longer-term deployment of excess capital," said Bedell.

For an analyst ratings summary and ratings history on IntercontinentalExchange click here. For more ratings news on IntercontinentalExchange click here.

Shares of IntercontinentalExchange closed at $224.43 yesterday.

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