Sinking Deutsche Boerse Weighs on NYSE Euronext Stock
Shares of NYSE Euronext (NYSE:NYX) dipped earlier this week as it was under pressure from the decline in value of shares of Deutsche Boerse. Overall financial sector stocks declined by nearly 2% on Monday ahead of Federal Reserve’s policy meeting. NYSE Euronext’s competitors such as Nasdaq OMX (NASDAQ:NDAQ) and CME Group (NASDAQ:NDAQ) also witnessed a decline in their stock price.
Deutsche Boerse, operator of German stock exchange and NYSE Euronext have agreed to combine their businesses, and under the merger agreement between the two companies, each share of NYSE Euronext is worth 0.47 shares of Deutsche Boerse. Deutsche Boerse’s shares have fallen by more than 29% since the deal was announced which has weighed heavily on the shares of NYSE Euronext. [1]
When viewed independently of Deutsche Boerse, NYSE Euronext’s business has been performing well in recent quarters. Volatile markets have increased trading volumes at the exchange and the demand for the company’s market data products is also growing rapidly.
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Our price estimate for NYSE Euronext stands at $47.70 and implies a premium of about 50% to the market price.
See our complete analysis for NYSE Euronext’s stock.
Notes:- NYSE Euronext (NYX) Down 6% As Value Of Deutsche Boerse Slides, Market Intelligence Center [↩]