Euronext is on track to keep costs down this year according to plan. An analyst from ING said this following the strong quarterly figures of the stock market company. Other market analysts were also positive. The profit was much better than anyone had expected.
Euronext previously came up with the objective of limiting the increase in costs this year to low single-digit growth. Based on the cost level in the first quarter, it seems that it will succeed, ING thinks.
The operator of the stock exchanges in Amsterdam, Paris and Brussels, among others, experienced further growth in the past reporting period, partly thanks to the earlier takeover of the Irish stock exchange. This has only been fully included in the results since the second quarter of last year.
The net profit did fall by 6.6 percent to 56.1 million euros. But connoisseurs had anticipated a greater decline here. According to ING, the taxes for the company were lower than expected, among other things.
An analyst from Citi calls both sales and earnings better than the consensus, which he believes is positive for the value of the share. He hopes that Euronext can quickly provide more information about the plans to incorporate Oslo Børs.
Behind the bid
Euronext is involved in a takeover battle for the Norwegian stock market operator with the American company Nasdaq, but it seems to settle it to its advantage. More than half of the shareholders support Euronext’s offer. At JPMorgan, an analyst points out that the incorporation of Oslo Børs is “strategically sensible” and can drive profit in 2020 by a one-digit percentage.
ING maintains its buying advice for Euronext, with a target price of 65 euros. The stock was on the rise on Thursday. Around 9.55 am, Euronext was 1.9 percent higher at 62.30 euros.