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Citi Research put MarketAxess Holdings (NASDAQ:MKTX) on a 30-day upside catalyst watch on Thursday on the expectation of strong August monthly data.
“While there are still a couple of trading days to go in the month, August is shaping up to be a strong month from a credit volume perspective,” analyst Christopher Allen wrote in a note to clients. “More importantly, we expect MKTX market share to benefit in both IG [investment-grade] and HY [high-yield] from lower issuance, higher credit spreads/volatility, wider bid-ask spreads, increased ETF activity, and lower PT [portfolio trading] activity.”
The analyst has a Buy rating on MarketAxess (MKTX).
Due to the strong August activity, “we see clear upside potential to consensus ($1.61) for 3Q24,” he added.
While the catalyst watch is based on an improved environment, there’s potential for positive effects from MarketAxess’s (MKTX) rollout of new trading tools/analytics, but that’s likely to be more of a factor in 2025, Allen noted.
Citi’s Buy rating on MarketAxess (MKTX) clashes with the SA Quant rating of Sell and aligns with the average Wall Street rating of Buy.
MarketAxess (MKTX) stock rose 0.9% in Thursday premarket trading.
