ISI Group Maintains Buy Rating on CME Group

A report from ISI reiterates its Buy rating and $290 price target on CME Group (NASDAQ: CME).

The report states, “We continue to view risk/return as compelling for CME shares given 1) at 13x 2012E, CME is trading at historically low market PE, 2) volumes in 4Q so far are holding up well and support current Consensus, 3) interest rate contract volumes have been relatively resilient despite more prolonged low rate backdrop, 4) pipeline reversal is helping WTI volumes and reduces long-term risk of market share loss in crude oil contracts, 5) opportunity to convert some OTC users to exchange-traded remains robust & 6) MF situation looks unlikely to be significantly material to CME.”

CME closed yesterday at $249.28.