RBC Capital Markets analyst Ashish Sabadra initiated coverage on Intercontinental Exchange Inc. (NYSE:ICE) at an Outperform rating and a price target of $200.
The analyst writes that Mortgage technology is poised for double-digit growth, driven by synergies from the BKI acquisition and a recovering market.
The analyst adds that ICE Bonds are expected to benefit from digitization, while ICE Indices will gain from the shift to passive fixed-income investing.
Sabadra says that the business model is recession-resilient, capitalizing on increased volatility and strong franchises in mortgage origination and servicing, energy benchmarks, the NYSE, and fixed-income indices.
The analyst says that ICE should see mid-single to high-single-digit (MSD-HSD) revenue growth from this sector, supported by strong sales momentum and an expanding implementation pipeline. In addition, opportunities to upsell and cross-sell to the fixed income customer base are ...
