10:58 AM EDT, 06/12/2026 (MT Newswires) -- MarketAxess ( MKTX ) will likely benefit from abating competition and a reacceleration in electronic bond trading fueled by artificial intelligence and electronic market makers, BofA Securities said in a note Friday.

"As more AI-enabled tools are launched for bond trading, the value proposition of e-trading will become increasingly superior to the phone," the investment firm said.

BofA analysts said MarketAxess ( MKTX ) was the first mover in bond electronic trading, but its market share has fallen to 33% from 57% in five years with the entry of rivals like Tradeweb (TW) and Trumid with a superior innovation engine, the note said. Tradeweb and Trumid, however, "have already picked the low-hanging fruit" and MarketAxess' ( MKTX ) share losses are now expected to decelerate, analysts said.

As MarketAxess ( MKTX ) valuation is sliding to an all-time low at the same time that competitive headwinds are subsiding, there is an opportunity to be more constructive on the company's shares, the investment firm said.

MarketAxess ( MKTX ) may also benefit from an increase in hyperscaler debt issuance, which has jumped 8 times year to date, and already accounts for 10% of total US investment grade corporate bond issuance, the note said.

BofA upgraded MarketAxess ( MKTX ) to neutral from underperform, with a $170 price target.

Shares of MarketAxess ( MKTX ) were up more than 3% in Friday trading.

Price: 120.02, Change: +3.69, Percent Change: +3.17