Citi opens ‘positive catalyst watch’ on CME into dividend announcement

Citi opened a “90-day positive catalyst watch” on shares of CME Group while keeping a Buy rating on the name with a $240 price target. The company’s fifth dividend, typically announced early December, has historically been a positive catalyst for the stock, the analyst tells investors in a research note. The firm also sees the potential for changes to CME’s capital return strategy, including a possible buyback and increased dividend. A more flexible capital approach would be well received, particularly if it provided CME opportunities to respond when the stock overreacts to headline risks as we have seen in recent months, the analyst tells investors in a research note. Also, the potential sale of Osstra “could provide an opportunity to flex capital returns in 2025,” adds Citi.