On Friday, Bank of America maintained its Buy recommendation on Euronext, with a price target of 118 euros, after the company's annual results were described as "decent".
In a reaction note, the broker emphasizes that the stock market operator's performance last year was modestly above consensus, while noting that its synergy target for 2024 has been revised upwards from 100 to 115 million euros.
According to the broker, most of the good news stems from the integration of Borsa Italiana, which it considers to be the key element of the deal.
"The acquisition of Borsa Italiana, when completed, will make Euronext a better company from our point of view", writes BofA in the note.
The professional considers that Euronext is already the undisputed leader in IPOs and cash transactions in Europe, but points out that from the end of 2024 it will benefit from an integrated derivatives platform that it can in turn grow.
"We continue to believe that Euronext is undervalued, with market sentiment ignoring the positive effects of integration", he continues.
"With a share price trading at 12.5 times expected earnings next year, a significant discount to peers, we believe the stock offers clear potential for value creation", concludes BofA.
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Euronext N.V. is a pan-European exchange group operating regulated markets in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. Euronext N.V. also operates non-regulated activities in 16 countries across the world. Euronext N.V. is listed in Paris, Amsterdam, Brussels and Lisbon since 2014.
Euronext N.V. is the leading listing and trading venue in Europe with EUR 6.6 trillion combined market capitalization at the end of 2023, close to 1,930 listed companies and the largest liquidity pool in Europe.
Euronext N.V. provides advanced market data services and a range of indices and index solutions, including the AEX, CAC40, BEL 20, ISEQ 20, PSI 20, and OBX, as well as a large set of ESG indices, such as CAC40 ESG or MIB ESG. Euronext N.V.'s proprietary trading platform, Optiq®, offers cutting-edge solutions to both trading and technology clients. Euronext N.V. offers clients innovative corporate and investors services. Euronext N.V. also operates Euronext FX in the United States and in Singapore and two spot FX matching engines in Tokyo and London.