Deutsche Bank Starts BATS Global Markets (BATS) at Hold

Deutsche Bank initiated coverage on BATS Global Markets (BZX: BATS) with a Hold rating and a price target of $26. Analyst Brian Bedell views shares as fairly valued.

"We view BATS as a compelling multi-year annual double-digit organic earnings growth story amid structurally slower growth at larger exchange peers. However, w/a greater portion of net revenue than peers tied to relatively mature & fragmented cash equities markets in the US & Europe (33% vs. 12%/9% at NDAQ/ICE & zero at CME/CBOE), we see the firm more exposed to risks of market structure changes, which appear benign for now, but can resurface in the future. We see the stock fairly valued, trading at a P/E of19x, a 17% premium to the S&P 500 & inline w/US exchange group," said Bedell.

For an analyst ratings summary and ratings history on BATS Global Markets click here. For more ratings news on BATS Global Markets click here.

Shares of BATS Global Markets closed at $25.50 yesterday.

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