Nasdaq downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Brian Bedell downgraded Nasdaq to Hold from Buy with a price target of $60, down from $72, post the Q4 results. The analyst believes 2023 "will become a considerably more challenging year" for Nasdaq than previously anticipated, due to a higher expense growth trajectory than expected, slower recurring revenue growth in several Solutions businesses due mostly to an extension of sales cycles, and the likelihood of a more adverse impact from lower equity markets on recurring revenue than anticipated. The firm now believes the company’s 2023 results will have negative operating leverage and says its non-GAAP earnings growth may be negative for the first time since 2012. As such, Deutsche Bank does not foresee any revenue or expense catalysts emerging for at least the next few quarters.