In a report released yesterday, Craig Siegenthaler from Bank of America Securities maintained a Sell rating on CME Group, with a price target of $204.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Craig Siegenthaler has given his Sell rating due to a combination of factors including CME Group’s recent performance and market conditions. The company’s earnings per share were slightly above expectations, but overall volumes were down significantly, primarily due to reduced market volatility and seasonal factors. This decline in trading volumes was observed across all asset classes, which is a concern given the cyclical nature of the business.
Furthermore, the competitive landscape poses challenges for CME Group, as it faces stiff competition from BGC Group in rates, Cboe Global Markets in equities, and Intercontinental Exchange. Despite a slight increase in revenue per contract, the overall market environment and tough comparisons from previous periods have led to a cautious outlook. Given these dynamics, Siegenthaler maintains an Underperform rating with a price objective significantly lower than the current trading price.
In another report released on October 14, J.P. Morgan also maintained a Sell rating on the stock with a $256.00 price target.
CME’s price has also changed slightly for the past six months – from $265.560 to $267.810, which is a 0.85% increase.