UPDATE: Goldman Sachs Downgrades CME Group to Sell on EPS Risk
Goldman Sachs reduced its rating on CME Group (NASDAQ: CME) from Neutral to Sell and reduced its price target from $53 to $48.
Goldman Sachs noted, "Although we view CME as the leading global futures exchange, with resilient margins and a powerful capital deployment strategy, we believe the Street is too optimistic on CME's near-term EPS outlook (we are 8% below consensus for 2013) given the most recent volume and open interest trends. Moreover, following CME's recent variable dividend announcement on 12/5/2012, we expect investor focus could shift back to the firm's core fundamentals, which continue to deteriorate with total open interest down 12% yoy through November."
CME Group closed at $54.96 on Friday.
Latest Ratings for CME
|Dec 2014||Deutsche Bank||Maintains||Buy|
|Dec 2014||Keefe Bruyette & Woods||Downgrades||Outperform||Market Perform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.