Lower Volumes in Cash Equities Weigh on Performance at Euronext; Fair Value Estimate Maintained

We maintain our EUR 88 per-share fair value estimate for Euronext after the exchange group reported fourth-quarter results just shy of our estimates. For the full year, earnings per share of EUR 4.10 were slightly short of our expected EUR 4.17 per share, as Euronext’s trading and clearing operations did not live up to our assumptions. Management provided guidance on its underlying operating costs excluding depreciation and amortization of around EUR 630 million for 2023 and lifted its total synergies from the Borsa Italiana Group by EUR 15 million to EUR 115 million. Our narrow moat rating is unchanged.