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Intercontinental Exchange, Inc. (ICE), with a market cap of $78.2 billion, operates in the financial services and technology sector, providing market infrastructure, data services, and technology solutions across multiple asset classes. Based in Atlanta, Georgia, its global operations span regulated exchanges, clearing houses, and a comprehensive mortgage origination platform.
Shares of Intercontinental Exchange have slightly outperformed the broader market over the past 52 weeks. ICE has gained 27.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.2%. However, in 2024, ICE stock is up 4.1%, lagging behind SPX's 11.2% gains on a YTD basis.
Zooming in further, ICE stock is underperforming the US Financial Services Ishares ETF's (IYG) 30.1% gains over the past 52 weeks.
ICE's outperformance relative to SPX over the past year is attributed to record trading volumes, consistent earnings growth, strategic acquisitions like Black Knight, a diverse product portfolio, efficient capital utilization, and robust shareholder returns through dividends and share buybacks. Furthermore, its stock surged 3.1% after the Q1 earnings report on May 2, driven by record trading volumes across multiple segments despite slight revenue misses and challenges in the mortgage technology segment.
For the current fiscal year, ending in December, analysts expect ICE's EPS to grow by 6.1% to $5.96. The company's earnings surprise history is promising. It beat or matched the consensus estimates in all of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly more bullish than a month before, with 10 analysts suggesting a "Strong Buy."
On May 17, Redburn Atlantic adjusted Intercontinental Exchange's price target to $167, while maintaining a "Buy" rating. That implies a potential upside of 24.9% from the current price levels.
The mean price target of $152.15 represents a premium of 13.8% to ICE's current levels. The Street-high price target of $164 implies a potential upside of 22.7% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
