First Read: Euronext NV "Q1:26 - A strong across-the-board beat" (Buy) Werner

Research evidence excerpt

First Read: Euronext NV "Q1:26 - A strong across-the-board beat" (Buy) Werner

Forecast returns

Forecast price appreciation 19.7%

Forecast dividend yield 2.6%

Forecast stock return 22.3%

Market return assumption 7.7%

Forecast excess return 14.6%

Company Description

Euronext is a French-based exchange group comprising the Amsterdam, Brussels, Dublin,

Lisbon, Milan, Oslo and Paris stock exchanges. Euronext's structure includes several business

units: listing, cash trading, derivatives trading, market data and indices, post-trade and

market solutions. Euronext merged with NYSE in 2007 and was subsequently acquired by

Intercontinental Exchange (ICE) in 2013. In June 2014, Euronext was spun off from ICE and

listed on the Paris stock exchange.

Valuation Method and Risk Statement

Our price target for ENX is derived using a two-stage DCF valuation approach.

ENX is exposed to a number of risks, the most important being regulatory. Any

implementation of new regulations (such as an FTT) could have a material impact on the

bottom-line of the firm. ENX is also exposed to any regulations with regards to how they

charge data fees to market participants: any regulation capping the market data charges

could have a negative impact on the company. ENX faces competitive risks from the number

of alternative trading venues that operate in Europe. The platforms have been winning

market share from ENX over the past 6 years and further market share gains threaten the

earnings power of the company. ENX is also exposed to market risk as equity and derivative

volume growth have an impact on the bottom-line of the company. Equity and derivatives

trading revenues account for ~45% of total revenues for ENX, which, as most of the