UBS Highlights Top European Exchange Picks After 2025 Price Reversal

The article says UBS's Global Research note finds earnings growth for European exchange operators intact and mentions Euronext and London Stock Exchange Group as preferred while rating Deutsche Boerse and Flow Traders neutral.

The article reports that UBS Global Research reviewed European exchange operators at the start of 2026. It notes a sharp reversal in share price performance during the second half of 2025 but says earnings growth remains intact and valuations are below historical averages. The article mentions two exchanges as UBS' preferred picks and describes two others as neutral given softer trading conditions and lower volatility. The piece summarizes UBS forecasts and the firm’s stated price targets for several firms. Key points: - The article says UBS finds earnings growth intact and valuations below historical averages despite a sharp share price reversal in the second half of 2025. - The article mentions Euronext and London Stock Exchange Group as UBS' preferred stocks, and describes Deutsche Boerse and Flow Traders as rated neutral amid softer trading and easing market volatility. - The article reports UBS forecasts for Euronext of 6%–11% revenue growth and 7%–11% EBITDA growth, and says UBS estimates Euronext’s recent deals could add about 3%–4% to EPS in 2026 and 7%–8% in 2027; UBS set a price target of €165 in the note. - The article reports UBS expects organic revenue growth for the London Stock Exchange Group of 6%–11% in 2026, with EBITDA and EPS growth noted through 2027, and says UBS set a price target of £110 while noting AI concerns weighed on the stock in 2025. - The article says UBS rated Deutsche Boerse neutral, forecasting roughly 3% revenue growth in 2026 and setting a price target of €250, while noting interest rate volatility was near a four‑year low. - The article says UBS rated Flow Traders neutral, noting softer revenue capture rates as market volatility eased and maintaining a price target of €25. Summary: The article frames UBS' views as favouring Euronext and the London Stock Exchange Group while taking a more cautious stance on Deutsche Boerse and Flow Traders in light of recent market conditions. It also notes UBS' forecasts and stated price targets and highlights where UBS believes consensus estimates could be revised, with potential developments in 2026 noted by the firm as possible. Undetermined at this time.