BUY Euronext, J-curve timing and valuation upside just right for a +15% pop

*With the company now closing the rights issue to fund the Borsa Italiana transaction we see the cards lining up for a decent jump

*Borsa Italiana acquisition accretive immediately – and now the company is well positioned for further M&A and leaving potential further upside to any valuation as they are set to become a structural winner

*Rights currently trading 70bps through terms as arbs are buying up rights to get access to the allocation of the rights not taken up – short interest is therefore huge the ENX ords with 90 days of vol shorted

*The company had strong 1Q earnings as well which seems to have gotten lost in all the focus around the rights issue

*Timing just right now from a rights issue pop type of trade as well, normally we start to see the selling pressure subsiding around now which should position the stock for a nice pop over the next – rights stop trading on 6th May

*Valuation looking see the stock trading at a 15% discount to our DCF valuation and a 25% discount to its peers