Intercontinental Exchange Upgraded by RBC

Intercontinental Exchange received an investment-rating upgrade Thursday from RBC Capital Markets, which said it was becoming more optimistic for the exchange operator’s Q1 derivatives momentum to be sustained.

The firm also raised its price target on Intercontinental Exchange’s shares, lifting the target to $70 per share from $65. This moves the target above the stock’s Wednesday closing price of $65.87 from below it. The new target is also above the stock’s all-time high of $66.90. In a note to clients, RBC said “continued momentum in ICE’s transaction business is a key reason for our upgrade.” The firm added: “We believe underlying fundamentals for ICE’s core derivatives business remain favorable and adjust our forward-looking volume estimates accordingly.”