Nasdaq Faces Upside as AI Fears Fade and Investors Feel Confident About Growth, UBS Says
Nasdaq (NDAQ) continues to execute well, and the stock could move higher as concerns around artificial intelligence fade and investors feel more confident in its growth trajectory, UBS Securities said in a report Friday, keeping the stock as a top pick.UBS said it remains bullish on Nasdaq following Q1 results, given strong underlying growth across all segments, with a notable acceleration in FinTech organic annual recurring revenue growth of 16.3% year-over-year.Growth in the FinTech segment progressed due to strong performance in the Capital Markets Technology business, which saw 20.5% revenue growth and added $84 million in Q1 ARR, according to the note.In Capital Access Platforms, an expected recovery in capital markets should be constructive, while the introduction of 23/5 trading is seen as a tailwind for market data, the firm noted. UBS expects near-term revenue acceleration for the Index business, with revenue growth of 17.2% forecasted for Q2.The brokerage said it adjusted its fiscal 2026 EPS estimate to $3.89 from $3.90 and fiscal 2027 EPS forecast to $4.39 from $4.37.UBS maintained a buy rating on Nasdaq with a price target of $120.Price: $89.65, Change: $+2.60, Percent Change: +2.99%
