Deutsche Bank analyst Brian Bedell raised the firm’s price target on CME Group to $218 from $200 and keeps a Buy rating on the shares. The company’s Q4 results were "quite solid," with a mild beat on revenue and interest income as well as a more significant beat on adjusted expenses, the analyst tells investors. However, CME is demonstrating pricing power by raising futures/options RPC this year, effectively a 4%-5% revenue increase, the firm says. Combined with organic growth initiatives and trading volumes that can grow at a low-mid-single digit pace, Deutsche Bank believes the company can generate EPS growth near 10% this year compared to 3% previously.
Published first on TheFly
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