Intercontinental Exchange (ICE: NYSE)

Intercontinental Exchange (ICE), a prominent financial exchange offering data and trading solutions, stands to benefit significantly from recent regulatory developments and strategic acquisitions.

The Securities and Exchange Commission’s (SEC) proposed rules mark a potential market overhaul, focusing on the practice of payment for order flow. This practice, where brokers like Robinhood sell customer orders to market makers for execution, has been contentious. The new rules could shift more trading volume back to public exchanges, including ICE, which has lost ground to off-exchange market makers. This regulatory shift is expected to create a substantial tailwind for ICE, enhancing its competitive position.

Additionally, ICE’s strategic acquisition of Black Knight Financial for $85 per share in cash and stock, valued at approximately $13 billion, is poised to transform the company’s market presence. This merger will combine two leading companies in mortgage technology, providing ICE with exposure to the entire mortgage origination value chain. The synergistic effects of this acquisition are anticipated to strengthen ICE’s balance sheet and expand its market reach.

Given these developments, we are bullish on ICE above $124.00-$125.00, with an upside target of $195.00-$200.00.

Mirum Pharmaceuticals (MIRM: NASADQ)

Mirum Pharmaceuticals (MIRM) is making significant strides in the biopharmaceutical sector with its focus on therapies for debilitating and orphan diseases. Recently, Mirum announced the submission of a New Drug Application (NDA) for chenodiol tablets aimed at treating cerebrotendinous xanthomatosis (CTX). This follows positive results from the phase 3 RESTORE trial, positioning chenodiol well for potential FDA approval, which could mark a breakthrough in early diagnosis and treatment for this rare disease.

CEO Chris Peetz expressed optimism about the potential impact of chenodiol, highlighting its potential to alleviate progressive symptoms associated with CTX. Institutional investors on Wall Street have taken notice, with firms like Citi increasing their price target for Mirum Pharmaceuticals significantly to $64, up from $38, while maintaining a Buy rating. This reflects growing confidence in Mirum’s pipeline, bolstered by recent updates on its drug volixibat and FDA approval for Livmarli, a treatment for cholestatic pruritus in PFIC patients.

Given these developments and positive market sentiment, we maintain a bullish outlook on MIRM above $29.00-$30.00, with an upside target set at $48.00-$49.00.

Ethereum (ETHUSDT)

Ethereum remains the main trade for the next few weeks due to the ETF narrative. There are two main reasons why we believe the ETH spot ETF flows will be favorable: First, institutions will provide seed money, ensuring strong flows. Second, there will be less selling pressure from Grayscale’s ETHE compared to their GBTC, as ETHE shares will be converted into the ETH trust on a 1:1 ratio.

Given these factors, the entry point for this trade is $3,000. The target profit levels are set at $3,250, $3,530, and $3,700. A stop loss is placed just below $2,900 to manage risk effectively.

Overall, this strategy hinges on the anticipated positive impact of institutional involvement and reduced selling pressure, positioning ETH for potential gains in the coming weeks.