Citi opens’ 30-day Negative Catalyst Watch’ on MarketAxess

Citi is opening a “30-day Negative Catalyst Watch” on MarketAxess (MKTX) ahead of its June Q2 metrics release after updating estimates for revised volume assumptions. Volume trends have pressured the shares and the the firm sees potential for further downside in the near-term, noting that its revised $1.56 Q2 EPS estimate is 11% below consensus. The firm’s long-term view remains unchanged and it keeps a Buy rating on the shares as it still calls MarketAxess “one of the best ways to play electronification trends in FICC,” but in the near-term it prefers Tradeweb Markets (TW) given more asset class diversity and higher leverage to rates, where Citi sees better trends.