Two analysts on Friday said they were cautious of stock exchange operators' performance due to a potential decline in volume, though one analyst did upgrade Nasdaq OMX Group Inc.
A Keefe, Bruyette & Woods Inc. analyst cut earnings estimates for some exchange operators, while a Lehman Brothers analyst reduced his price target for Nasdaq OMX Group.
Lehman Brothers analyst Roger Freeman cut his price target to $50 from $52 for Nasdaq OMX Group Friday because of concerns in the broader sector, but he also upgraded the stock to "Overweight" from "Equal-Weight."
The upgrade was based on its current valuation, Freeman wrote in a research note. Nasdaq OMX Group should benefit from synergies as it integrates recent acquisitions and potential new opportunities, making the stock attractive at its current price, Freeman wrote.
Shares of Nasdaq OMX Group rose 63 cents to $35.05 in afternoon trading.
KBW analyst Niamh Alexander reduced 2008 earnings estimates for Nasdaq OMX Group, as well as CME Group Inc. and NYSE Euronext.
Alexander cut her 2008 earnings estimate for Nasdaq OMX Group to $1.91 per share from $1.92 per share. CME Group's estimate was reduced to $3.80 per share from $4.35 per share, while NYSE Euronext's estimate was lowered to $3.35 per share from $3.44 per share.
U.S. cash equity trading volume is down 16 percent quarter-to-date compared with the prior quarter, Alexander wrote in a research note. Volatility driven volume due to unsettled credit markets is likely waning, Alexander said.
"We expect a slow summer of trading in cash equities and interest rates after the violent last nine months," Alexander wrote in the note. "This could leave investors struggling to find near-term catalysts from the fundamentals for these stocks, having to refer to regulatory driven or deal related catalysts."
Shares of CME Group fell $5.58 to $431.72.
NYSE Euronext shares fell 7 cents to $63.91.
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