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TSX Group Inc. is winning kudos for a plan to buyback up to 10 per cent of its stock, which, along with a second-quarter profit beat, has lifted investor sentiment and prompted TD Newcrest analyst Doug Young to raise his target price to $46 from $43. Assuming all the shares are swept up at $46, he figures the $320-million cost will hardly put a  dent in the company's estimated cash and debt capacity of $1-billion. While the buyback is a positive step, he argues that a merger between the TSX and Montreal Exchange "remains the primary catalyst" for the TSX Group to surface shareholder value. That's because while a plan to cut trading fees in the fourth quarter could spur some growth in volumes, it has its limits, especially if capital markets weaken and the hollowing out of Corporate Canada continues, he reasons. On the other hand, raising listing fees could offset lower trading fees.

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