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Morgan Stanley has reduced its stock rating for Miami International Holdings (NYSE:MIAX) to Equalweight from Overweight, and revised its price target downward to $50.00 from $53.00. The downgrade is attributed to a more balanced risk-reward outlook following the company's strong execution and market share rebound to the high teens in the third quarter.

Revenue per contract is expected to soften in the second quarter, and margin expansion is anticipated to slow from mid-50s levels. Despite the downgrade, Morgan Stanley maintains a long-term thesis for MIAX, believing the company is positioned to outgrow the U.S. multi-list options market through industry growth, share gains, and operating leverage.

The firm's fundamentals remain solid, with 16.8% revenue growth over the past year and an 18% return on equity. Analysts predict net income growth this year, and four have increased their earnings estimates for the upcoming period. Miami International Holdings reported a strong second quarter for 2026, surpassing earnings expectations with adjusted diluted earnings per share of $0.48, significantly above the projected $0.27.

Revenue also reached a record $141.1 million. The company's expansion into Bloomberg-branded futures and broader product lineup present potential future growth opportunities. Morgan Stanley remains constructively optimistic about Miami International Holdings' long-term growth outlook despite the downgrade.