UBS raises Nasdaq stock price target to $95 on strong trading metrics

UBS has raised its price target for Nasdaq Inc. (NDAQ) to $95 and increased its second-quarter 2025 EPS estimate, citing elevated trading activity in US options and European equities, alongside robust growth in its index business. NDAQ is currently trading near its 52-week high, having delivered a nearly 48% return over the past year, with other analyst firms like Raymond James and Citi also upgrading their price targets, despite an InvestingPro analysis suggesting a premium valuation. This reflects strong operational performance and stable governance, reinforcing positive sentiment around the stock.

Analysis

Nasdaq Inc. (NDAQ) is experiencing positive analyst sentiment, led by a UBS price target increase to $95.00, underpinned by strong operational metrics for June. The revision is driven by elevated trading activity in US options and European equities, alongside a robust 18.5% year-over-year growth forecast for its index business in the second quarter. This has prompted UBS to raise its Q2 2025 EPS estimate to $0.82, surpassing the consensus of $0.79. The market has responded favorably, with the stock trading near its 52-week high after a 47.62% return over the past year. However, this performance comes with a premium valuation, reflected in a high P/E ratio of 40.29 and an InvestingPro assessment that the stock is trading above its Fair Value. While other firms like Raymond James and Citi have also raised targets, a note of caution is that UBS's revised organic solutions growth forecast of 7.5% remains below Nasdaq's own medium-term guidance of 8-11%. Recent governance developments, including the re-election of the Chair and board, signal stability and continuity in strategy.

Key Decisions for Investors

• Investors should weigh the strong operational momentum and positive analyst revisions against the stock's premium valuation, as indicated by a P/E ratio over 40 and its price near a 52-week high.
• A key performance indicator to monitor is whether Nasdaq's organic growth can accelerate to meet its own 8-11% medium-term guidance, as the current analyst forecast of 7.5% may already be factored into the price.
• Given the stock's significant run-up of nearly 48% in the past year, it may be prudent for investors to consider the risk of profit-taking, especially if broader market conditions become less favorable or trading volumes normalize.