Morgan Stanley resumed coverage of Euronext shares on Thursday, with a 'weight in line' recommendation and a price target of 93.5 euros.

In a study of European stock market operators, the analyst acknowledges that the stock's valuation may seem attractive, but believes that its cyclical nature is likely to limit its immediate upside potential.

Morgan Stanley expects that economic uncertainties will lead issuers to postpone their projects, a factor likely to penalize the Group, which is highly dependent on cash markets and IPOs.

As for the integration of Borsa Italiana, it seems to be progressing well, continues the analyst, who nevertheless considers that the synergies of the operation are already well integrated into the share price.

As for potential accretive acquisitions, the professional acknowledges that they have the potential to support the value, but points out that recent financial news seems to have scalded investor enthusiasm for operations deemed too risky.

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