ERNXY - Euronext: Clean Q4 Results - Still A Buy

2024-02-20 06:10:06 ET

Summary

• Euronext's Q4 results showed a 15.1% increase in adjusted EBITDA, beating Wall Street consensus by 3.2%.
• The company achieved 60% of non-volume related revenue and surpassed its target for annualized EBITDA synergies.
• Euronext dividend per share was raised once again at a double-digit rate.
• Positive regulatory changes support our buy rating.

Following our recent update on the London Stock Exchange Group and the just-released results, we are back analyzing Euronext (EUXTF). Post Q2, we stated : Patience Pays Off, The Company Is Still A Buy . Our buy rating was supported by:

1. Non-volume revenue growth now represents 60% of the company's total turnover. As a result, Euronext is less dependent on market volatility and trading volume. Still, we positively view the MTS upside on fixed-income trading
2. Lower-than-expected costs thanks to higher synergies
3. An ongoing deleverage coupled with a tasty DPS
4. Ongoing share repurchase combined with a discount to peers. In addition, we positively see the EU regulatory frameworks

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