In a major breakthrough, Beeks Financial Cloud Group Plc (LON:BKS) has revealed Nasdaq as the latest customer for its cutting-edge Exchange Cloud service. This announcement cements Beeks’ position as a leader in providing low-latency cloud computing and connectivity solutions to capital markets.
The company disclosed that its Exchange Cloud service is now operational within Nasdaq’s core data centre in Carteret, New Jersey, with additional customers expected to come on board by late February. According to analysts at Canaccord Genuity, this development “supports Beeks’ growth aspirations” and is a key factor underpinning their forecast of approximately 40% organic revenue growth for FY25.
Beeks’ partnership with Nasdaq—one of the world’s largest stock exchanges by market capitalisation—is not only a landmark achievement but also a potential catalyst for further deals. As noted by Canaccord Genuity analysts Kai Korschelt, Hayley Palmer, and Tom Like, “such an impressive blue-chip logo reference customer will likely catalyse additional interest in Beeks’ unique Exchange Cloud offering.”
The Exchange Cloud platform enables global exchanges to enhance revenue from colocation services while delivering significant cost and convenience benefits to their trading ecosystem customers. Canaccord Genuity anticipates that successful uptake of this platform could make large exchanges like Nasdaq £10–20 million revenue opportunities for Beeks. Additionally, the total addressable market (TAM) for the Exchange Cloud could stretch to several hundred million pounds.
The analysts remain bullish, maintaining a “Buy” rating with a price target of 335p, which represents a strong upside from the current share price of 264p. Their valuation is based on 5x CY25E EV/Sales and a 40x P/E ratio, reflecting Beeks’ superior growth potential compared to its peers. They added, “Successful conversion of additional deals in the late-stage pipeline could drive further EPS upside over the next 12-18 months.”
This optimism is further bolstered by Beeks’ expanding client base and robust financial performance. The analysts estimate more than 20% compound annual growth rates in sales and earnings per share from FY24 to FY26, with operating margins expected to expand conservatively by 180 basis points in FY25.
On a Final Note
Beeks Financial Cloud’s strategic partnership with Nasdaq marks a transformative step in its growth journey. With its unique product offerings, robust financial outlook, and opportunities in the Exchange Cloud market, Beeks is well-positioned for long-term success. As Canaccord Genuity highlighted, this is a company poised to redefine the trading ecosystem and deliver significant shareholder value.
