Goldman Sachs: Buy NASDAQ, Sell NYSE

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By Douglas A. McIntyre Published
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Stock Tickers: NDAQ, NYX, BOT, GFIG

Goldman Sachs has a research call this morning on exchanges and a financial player this morning.  Goldman Sachs is raising its views on the NASDAQ Stock Market, Inc. (NDAQ-NASDAQ): raised rating to BUY from NEUTRAL; raised EPS target from $1.20 to $1.25 and raised next fiscal year EPS from $1.75 to $1.88.

There were Downgrades in the Group: Cut NYSE Euronext (NYX-NYSE) to SELL from Neutral; downgrades both GFI Group (GFIG-NASDAQ) and CBOT Holdings Inc. (BOT-NYSE) from Buy ratings down to NEUTRAL.

Goldman is even doing this as a PAIRS TRADE as a BUY NDAQ and SELL NYX based on the implementation of REG NMS in July, which Goldman Sachs expects to pressure market share and pricing at the NYSE and its high margin ARCA business.  Goldman is now less concerned about pricing pressure at NASDAQ; and is more optimistic about positive catalysts ahead, such as market share gains and a potential acquisition in derivatives.

Jon C. Ogg
April 23, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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