Miami International Holdings, the newly public operator of U.S. options exchanges, has drawn attention from Wall Street analysts, with three firms initiating coverage and offering diverging perspectives on the stock.
Keefe, Bruyette & Woods (KBW) initiated the firm’s shares with a Market Perform rating and a $37 price target, citing valuation constraints.
“MIAX has executed exceptionally well over the past decade, driving material market share gains, and growing to become the second largest multi-list options exchange in the U.S. by revenue,” KBW wrote.
However, the firm argued that “shares have performed exceptionally well since IPO” and now offer “relatively modest upside (+4%), partially due to the impact of additional dilution at current share prices.”
Morgan Stanley took a more bullish stance, launching coverage with an Overweight rating and a $42 price target.
The bank highlighted MIAX’s “proven track record of gaining market share” and called it “a pure-play options exchange in an attractive marketplace with cyclical and secular tailwinds.”
Morgan Stanley expects industry options volumes to grow at a 6% compound annual rate between 2025 and 2027, compared with 11% for MIAX, and said the company’s shares trade at a discount to peers. “Discount unwarranted, we think, given distinctive pure-play position in options & better growth,” the firm wrote.
Piper Sandler also initiated at Overweight with a $39 price target, arguing that MIAX deserves a premium.
The firm noted MIAX’s “peer-leading revenue and margin growth expectations” and highlighted “scarcity value given the lack of publicly traded smid cap exchanges.”
Piper added that the company could eventually attract a “takeout premium given its attractive portfolio of exchange & clearing licenses.”
Source :
https://www.investing.com/news/stock-market-news/miami-international-holdings-shares-wall-street-analysts-weigh-in-4229728
