UBS downgraded MarketAxess (MKTX) from Buy to Neutral. The firm adjusted its price target to $167 to align with the acquisition price offered by Intercontinental Exchange (ICE).
ICE announced the all-cash acquisition of MarketAxess on July 30. UBS expects the deal to close and anticipates the stock will trade on deal dynamics rather than company fundamentals until the transaction is complete.
The acquisition news triggered a nearly 40% surge in share price over several days. This movement overshadowed the company's second-quarter earnings release. An investor rights law firm has initiated an investigation into the fairness of the sale price.