TD Cowen Upgrades Nasdaq to Buy with $106 Price Target
TD Cowen analyst Bill Katz has upgraded Nasdaq, Inc. (NDAQ) from Hold to Buy, raising the price target from $105 to $106. The upgrade comes at a time when Nasdaq shares closed at $83.99, implying approximately 26% upside to the new target. The move reflects growing confidence in Nasdaq’s business trajectory, particularly following the company’s decision to raise its medium-term revenue outlook for its largest division.
Why the Rating Changed
Several recent developments appear to have driven TD Cowen’s more bullish stance on Nasdaq:
- Raised Medium-Term Revenue Forecast: According to Reuters, Nasdaq recently raised the medium-term revenue forecast for its biggest division, citing strength in its data, listing, and index businesses. These capital access platforms represent a critical growth engine for the company, and the upward revision signals management’s confidence in sustained demand across these segments.
- Strength in Capital Access Platforms: Nasdaq’s data and index businesses have become increasingly important revenue contributors. The company’s ability to raise its outlook for this division suggests that recurring, high-margin revenue streams — such as market data subscriptions and index licensing fees — are performing well and may be accelerating.
- Continued Listing Activity: Nasdaq’s listing business continues to attract new companies to the exchange. For example, Eagle Nuclear Energy recently began trading on Nasdaq under the ticker NUCL after closing its SPAC deal and rebranding, illustrating ongoing demand for Nasdaq’s listing platform across emerging sectors, including nuclear energy.
With shares trading well below the $106 target at the time of the upgrade, TD Cowen’s shift from Hold to Buy suggests the firm believes the market has not yet fully priced in the improved revenue outlook and the underlying strength of Nasdaq’s diversified business model.
Dividend Snapshot
For income-focused investors, Nasdaq currently pays an annual dividend of $1.08 per share, which translates to a dividend yield of approximately 1.29% based on recent prices. The most recent ex-dividend date was March 15, 2026.
While Nasdaq’s yield is modest compared to many traditional dividend stocks, it reflects the company’s orientation as a growth-and-income hybrid. Nasdaq has historically prioritized reinvesting in its technology and data platforms while maintaining a steady dividend. Investors should consider the dividend as a complement to the capital appreciation potential highlighted by TD Cowen’s upgraded price target.
Key Takeaways for Investors
- TD Cowen upgraded NDAQ from Hold to Buy with a price target of $106, representing significant upside from the $83.99 closing price at the time of the upgrade.
- The upgrade appears closely tied to Nasdaq’s raised medium-term revenue forecast for its largest division, driven by data, listing, and index business strength.
- The stock offers a 1.29% dividend yield with an annual payout of $1.08 per share.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. DivRank.com is not responsible for any investment outcomes based on the information presented here.