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:
- 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
- Lower-than-expected costs thanks to higher synergies
- An ongoing deleverage coupled with a tasty DPS
- Ongoing share repurchase combined with a discount to peers. In addition, we positively see the EU regulatory frameworks
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Euronext: Clean Q4 Results - Still A Buy