Intercontinental Exchange: Great Quality, Attractively Priced
Summary
- Intercontinental Exchange is a fantastic business in a fantastic industry - a rare 'natural monopoly' whose returns are not regulated.
- I estimate a potential upside of 42% gain for its share price.
- ICE's unwise sally in cryptocurrencies has resulted in a $1.1 billion impairment, but at least it's done and over with.
- Lower-than-forecast CPI is great news for the exchange.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ICE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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