Tuesday, December 28, 2010

Nasdaq OMX (NASDAQ:NDAQ) Will Benefit From Weak Dollar Says Goldman (NYSE:GS)

The weakness of the U.S. dollar is considered one of the more important factors in the performance of exchange stock in 2011, and in the case of Nasdaq OMX Group (NASDAQ:NDAQ) it is considered a positive element, according to Goldman Sachs (NYSE:GS).

Goldman said, "we expect continued USD depreciation vs. major European currencies to benefit 4Q10 earnings for exchanges with greater international exposure."

They generate about 30 percent of their revenue internationally.

Determined by its historic multiple, Goldman also sees Nasdaq OMX Group as extremely attractive in comparison to its peers.

Goldman maintains a "Buy" rating on Nasdaq OMX Group, which closed Monday at $23.94, up $0.12, or 0.50 percent. They raised their price target on them from $24 to $28.

No comments: