JPMorgan reinstated coverage of IntercontinentalExchange with an Overweight rating and $139 price target following a period of restriction. ICE has underperformed peer exchanges this year as higher interest rates have weighed on both its data and mortgage technology business earnings growth, the analyst tells investors in a research note. However, the firm sees the potential for peak and/or falling interest rates in 2024 “to remove a key impediment” for the company’s revenue growth. In addiotnal, ICE’s new mortgage contract with J.P. Morgan will open the door to other meaningful partnerships with the other largest bank mortgage originators, says the firm.
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