EURONEXT -- CMD: Growth for Impact 2024

We joined the Euronext CMD yesterday, focussing on the new Growth for Impact 2024 strategy. We adjusted our 2021-2024 estimates accordingly, leading to some underlying shifts mainly linked to Borsa Italiana, though our short and medium term view on the company remains largely unchanged. We maintain our €115 TP and Buy recommendation.

•The strategy focusses on leveraging the scale of the extended groupincluding Borsa Italiana, and the fact that Euronext now has control over the full value chain. This allows the group to capitalize on new opportunities not possible before.
•The updated financial guidance of 3%-4% revenue ’20-’24 CAGR and 5%-6% EBITDA ’20-’24 CAGR is roughly in line with our pre-CMD expectations, indicating somewhat conservative targets. They are not raising the bar of what we had in mind.
•Through expanding the reach of CC&G through the whole value chain (replacing LCH), Europanising the local CSD’s through Euronext Securities, leveraging the expanded group’s scale in trading and further building on technological & data innovation; Euronext puts forward a very credible path to achieve the targets sets. Implying some additional upside is possible from further opportunities. With M&A optionality on top.
•Ambitious Fit for 1.5° commitments, based on SBTi, will strengthen its ESG perception, and create credibility to offer ESG services & products to the financial market.
•Confirming out short & medium term view, we reiterate our €115 TP and Buy recommendation.