Nasdaq Inc(NDAQ;NSD) Loop initiates with Buy

STA Research
by: STA Research

Today Loop Capital’s Kenneth Hills initiated the firm’s coverage on Nasdaq Inc , with a Buy rating and a $146 target.
STA Research(stocktargetadvisor) has a average target on the stock of $121 with a consensus Strong Buy rating.   STA’s view of the stock is Slightly Bearish with a score of 4 out of 10, where 0 is very bearish and 10 very bullish.

 

What to like:
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to
make sure there is no specific reason.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Dividend Growth
This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What to not like:
Low market capitalization
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has unique technology or market which can help it grow or get acquired in future.
Poor return on equity
The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector

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