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MarketAxess Downgraded on Softer Credit Outlook, Morgan Stanley Says

BY MT Newswires | CORPORATE | 11/20/25 11:13 AM EST

11:13 AM EST, 11/20/2025 (MT Newswires) -- MarketAxess Holdings (MKTX) , which operates an electronic trading platform for corporate bonds and other fixed-income securities, is facing a potentially benign credit outlook that may weigh on secondary volumes into 2026, Morgan Stanley said Thursday in a report.

Morgan Stanley downgraded MarketAxess (MKTX) shares to equal weight from overweight and lowered its price target to $209 from $247.

With industry-wide volumes under pressure, MarketAxess (MKTX) has limited scope to expand market share meaningfully, as new initiatives take time to scale, the report said.

Morgan Stanley cited a slowdown in volatility in recent quarters. While conditions showed signs of improvement in Q4, trends from earlier periods may persist through 2026, the report said.

Revenue growth is projected to slow to 8% over the next two years, with a compound annual growth rate of 9%, Morgan Stanley said.

MarketAxess (MKTX) shares fell 2.6% in recent Thursday trading.

Price: 162.86, Change: -4.33, Percent Change: -2.59

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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