Cboe Global Markets downgraded to Underweight from Overweight at Morgan Stanley

Morgan Stanley downgraded Cboe Global Markets (CBOE) to Underweight from Overweight with a price target of $215, down from $256. The “sooner and better than expected” tariff de-escalation with China reduces tail risk and volatility, which could limit upside to index options volumes on Cboe’s exchange, the analyst tells investors in a research note. The firm now sees a slower volume growth outlook with more downside risk to estimates for the company. Morgan believes Cboe’s multiple faces risk of de-rateing to 21-times on a slower volume growth outlook.