The Nasdaq's recent outperformance may have been too much, too fast, according to Atlantic Equities. The firm downgraded Nasdaq to neutral from overweight. It did increase its price target to $200 from $190, though that implies upside of just 4% from Thursday's close of $192.12. Nasdaq shares have jumped about 25% since June 30, compared to the S & P 500 index's 12% increase during that time. That said, "Its valuation discount has been eroded with the shares now trading near peak absolute and relative PEs on a forward basis following the rally from recent lows," analyst Simon Clinch wrote in a note Friday. Nasdaq's earnings growth will also be lackluster in the next 12 months, thanks to tough comparisons across business segments and Atlantic Equities' expectations for the normalization of cash equity and options volumes through fiscal year 2023, Clinch said. However, the firm has a positive long-term view on the stock. "Nasdaq remains a core holding for long-term investors in our view," he said. Among the reasons it cited is Nasdaq's industry-leading management team and culture. It also expects the shift towards recurring and SaaS software revenue streams to continue over the next several years. "We believe Nasdaq can sustain earnings growth in the low- to mid-teens, driven by 6-9% growth in its Solutions Segments revenues, 3-6% growth in expenses, and capital allocation opportunities," said Clinch. —CNBC's Michael Bloom contributed reporting.