Market Overview

UPDATE: JP Morgan Raises PT to $55 on CME Group on Competitive Positioning

Share:
Related CME
CME Group, Multi Commodity Exchange of India sign MoU
Goldman Sachs Downgrades Ameriprise Financial, Virtus On 'Weak Flows' And Retail Risks
Why Are Securities Exchanges Great Stocks Now? - Analyst Blog (Zacks)

JP Morgan reiterated its Underweight rating on CME Group (NASDAQ: CME) but raised its price target from $54 to $55.

JP Morgan noted, "CME is a high quality company, in our view, with high margins, strong cash flow generation, and strong competitive positioning. However, we don't expect that CME's stock will continue to outperform peers', given deteriorating fundamentals and perhaps loftier expectations of the OTC clearing opportunity than we think are realistic. The issue is that the core businesses continue to face headwinds and Wall Street estimates continue to move downwards reflecting this, but the stock keeps moving higher. The risk to the upside, in our mind, is that a potential QE3 lifts volumes in the short term, although looking at past periods of quantitative easing, volume increases have not appeared to be sustainable."

CME Group closed at $57.10 on Tuesday.

Latest Ratings for CME

DateFirmActionFromTo
Jul 2015Keefe Bruyette & WoodsMaintainsMarket Perform
Jul 2015BarclaysMaintainsEqual-weight
Jul 2015UBSMaintainsBuy

View More Analyst Ratings for CME
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Price Target Intraday Update Analyst Ratings

 

Related Articles (CME)

Get Benzinga's Newsletters