Prudential Comments NMX and ICE Valuation, Takeover Premiums
This morning, Prudential initiated coverage on the recent hot IPO NYMEX Holdings (NYSE: NMX) with an Underweight rating and $112 target. The firm also raised its price target on IntercontinentalExchange (NYSE: ICE) from $100 to $120.
The firm thinks NYMEX has a takeover premium built into the stock, but says the stock is too pricey to attract suitors. On ICE, the firm said they don't feel a takeover premium is reflected in the stock.
The firm wants investors to swap out of NMX into ICE.