On Friday, UBS analyst Alex Kramm confirmed a Buy rating on Intercontinental Exchange (NYSE:ICE) with a steady price target of $195.00. According to InvestingPro data, ICE, currently valued at $93.57 billion, has analyst targets ranging from $158 to $230, with the stock trading at a P/E ratio of 34x. Kramm’s statement followed the release of ICE’s March metrics, leading to an increase in the first quarter 2025 earnings per share (EPS) estimate to $1.69 from the previous $1.68, aligning closely with the consensus estimate of $1.68. The revision reflects an adjustment in the total first-quarter exchange revenue forecast, which is now expected to grow by approximately 11% year-over-year. This follows ICE’s impressive revenue growth of 16.16% over the last twelve months, as reported by InvestingPro. This change is based on trading activity in the first quarter being 3% higher than initially estimated, despite futures pricing being 2% lower than expected.
Kramm also noted a minor adjustment in the Financial Data & Information Services (NASDAQ:III) (FIDS) segment, with expectations slightly reduced by about 1% due to anticipated lower credit default swap (CDS) and cash credit transaction revenue. The mortgage forecasts remain the same; however, Kramm mentioned a potential risk of losing an estimated $50 million to $60 million from the recent deal between Rocket Companies (RKT) and Mr. Cooper Group (COOP), which would not materialize before 2026 at the earliest.
Despite these adjustments, UBS remains positive on ICE due to strong exchange volumes that continue to drive positive estimate revisions and the potential for cyclical mortgage upside. Kramm acknowledged the significant multiple expansion that ICE’s stock has experienced so far this year. The company maintains a "GOOD" financial health score according to InvestingPro, which has identified 8 additional key insights about ICE’s performance and valuation in their comprehensive Pro Research Report, available to subscribers.
In other recent news, Intercontinental Exchange (ICE) reported a record-breaking first quarter for 2025, achieving the highest trading volume in its history across several asset classes, including global commodities, energy, and financials. The company’s average daily volume (ADV) for March surged by 31% year-over-year, with notable growth in the energy sector, which saw a 24% increase in ADV. Additionally, the natural gas markets experienced a substantial 54% year-over-year growth in total ADV. In a related development, Intercontinental Exchange announced that NYSE Texas has officially begun operations, marking the first securities exchange in the state, with Trump Media & Technology Group as the inaugural listing.
Analysts have been positive about ICE’s performance, with RBC Capital Markets maintaining an Outperform rating and a $200 price target, citing significant year-over-year increases in average daily volume for March, particularly in the Rates and Energy sectors. Keefe, Bruyette & Woods also reiterated an Outperform rating with a $186 target, noting that the first-quarter performance exceeded their estimates for rates volumes and cash equities ADV. Meanwhile, Raymond James confirmed an Outperform rating and a $195 target, emphasizing the company’s strong Exchange results amid high energy volatility.
Despite challenges in the Mortgage Tech segment, Raymond James highlighted Intercontinental Exchange’s strategic positioning for continued success. Keefe analysts noted that the company’s first-quarter earnings per share (EPS) could potentially surpass the consensus estimate, assuming other factors remain constant. These recent developments underscore Intercontinental Exchange’s robust performance and strategic expansions in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.