CME Group downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs downgraded CME Group to Sell from Neutral with a $195 price target. The analyst believes CME was over-earning in 2022 and 2023 amid record spike in interest rate volatility, above-typical pricing increases, and higher earnings on customers’ cash collateral resulting in a high-teen earnings growth. The firm expects the company’s earnings growth to slow down to low-single-digits through 2026 on the back of normalization in interest rates volatility, compression in interest income generated from cash collateral balances, and competitive dynamics in equities and energy franchises where CME has been losing share.