top of page
  • Writer's pictureAbacus Research

MarketAxess (MKTX)

We see an opportunity to own a great long term asset that can compound 10%+. We like everything about MKTX, the high quality, low capital intensity, depressed margins, the recent stock weakness, plus the highly likely cyclical rebound.

  • The market is worried on two fronts:

    1. Tradeweb taking share

    2. Fee compression which is driven by cyclical factors-

  • We think both concerns are overdone. Our 2024 EBITDA estimates are 20% above consensus.

  • The challenge has always been valuation, how much should we pay for this sort of asset? After the derating, we think it is easier than it has been.

Potential Upside: $410-$430 (+27%) Sensible Downside: $275 (-18%)

Recent Posts

See All

Fortive: potential14% IRR

Fortive is a high quality business with an asset light model, high margins, high incremental margins and consistent FCF generation that is reinvested in M&A. Recent guidance for slow organic growth fo

Vertiv (VRT) - Datacentre play on AI theme

Vertiv is a leader in critical infrastructure for datacentres and a clear beneficiary of AI driven growth. AI tailwind for datacentres is only starting. To date, Vertiv has seen little to no impact fr

Palantir (PLTR)

The advent of LLM’s have changed Palantir's relationships with institutions – the commercial market is now open to what Palantir is selling. This is a significant change from one year ago. AIP bootcam


bottom of page