MarketAxess Is A Buy Amid Excessive Pessimism
Summary
MarketAxess's stock has declined by 70% from its ATH due to a decline in profitability, slower revenue growth, and conce...
MarketAxess's stock has declined by 70% from its ATH due to a decline in profitability, slower revenue growth, and concerns around its market share. The pessimism surrounding MarketAxess brings an attractive opportunity to acquire a highly profitable and growing business at 23x NTM EPS. The industry benefits from the transition from voice to electronic trading, demand for automation tools, reduced regulation, and room to expand internationally.