TMX Makes Strategic Investment in Fintech Company

TMX Group (TSE: X) announced Friday that it is acquiring, through an equity investment, a minority interest in SigmaLogic, Inc. (doing business as ETFLogic).

This U.S.-based fintech company is a leading provider of analytical and portfolio management tools within the wealth management industry.

Research and Analysis Platform for Wealth Advisors

This investment follows the January 2021 launch of TMX LOGICLY, a collaboration between TMX Datalinx®, the information services division of TMX, and ETFLogic.

Designed in 2017, LOGICLY integrates research tools into a web-based trading and portfolio management platform covering multiple assets, such as ETFs, mutual funds and stocks, as well as portfolio analysis and optimization and trading analysis functions.

Management Commentary

“TMX is committed to seeking out strategic opportunities to partner with the innovative, early-stage companies pushing the transformation of today’s investment industry,” said Jay Rajarathinam, Chief Operating Officer, TMX Group.

“We are excited to announce this investment in ETFLogic, as we continue our collaborative work on TMX LOGICLY to help bring ETF advisors and investors greater transparency and efficient access to valuable insights and tools.”

Wall Street’s Take

On February 9, BMO Capital analyst Etienne Ricard kept a Hold rating on X and lowered its price target C$150 (from C$157). This implies 19.3% upside potential.

Overall, TMX stock scores a Moderate Buy consensus rating based on two Buys and four Holds. The average TMX Group price target of C$149.17 implies 18.6% upside potential to current levels.

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