Deutsche Bank upgraded Intercontinental Exchange to Buy from Hold, citing exchanges as best positioned among financial market firms as volatility lifts trading activity. The bank favors exchanges and trading platforms over brokers and asset managers in the near term, driven by geopolitical risks and higher market swings.

Exchanges typically benefit when market swings increase trading volumes and demand for hedging tools, which can support revenue from derivatives, data services and transaction fees. Deutsche Bank raised its rating on ICE as part of a broader sector review following fourth-quarter earnings, while updating profit estimates and price targets with less than a month left in the first quarter.

The brokerage rates seven of the ten companies in its coverage universe as Buy, naming ICE as its top near-term pick. Deutsche Bank expects two interest rate cuts by the Federal Open Market Committee in 2026, now expected in the third and fourth quarters, and maintains its S&P 500 forecast at about 8,000 by year-end.