11:30 AM EST, 11/20/2025 (MT Newswires) -- Nasdaq (NDAQ) is seen as an "attractive play" on capital markets recovery and a business transformation story as the company shifts to higher quality recurring revenue streams, Morgan Stanley said in a note Thursday.

Revenue growth will likely accelerate across its solutions business into 2026 to 2027 as capital markets recovery ramps, while a supportive macro backdrop for risk assets into 2026 is expected to boost index revenue and support Nasdaq's workflow and insights businesses, according to the note.

The investment firm said the cyclical and secular tailwinds driving Nasdaq's execution momentum will likely catalyze a re-rating toward info services comps.

As Nasdaq's shares are up 13% year to date, lagging the valuation of peers' shares that increased 18%, Morgan Stanley said it sees an attractive entry point into the stock.

The firm raised its 2026 and 2027 earnings per share estimates for Nasdaq by 6.9% and 9.4%, respectively, to $3.85 and $4.42.

Morgan Stanley upgraded Nasdaq to overweight from equal-weight, and lifted the price target to $110 from $97.

Price: 87.37, Change: +1.35, Percent Change: +1.57