Market Overview

UPDATE: Compass Point Research & Trading Initiates Coverage on CBOE Holdings with Neutral Rating, $30 PT

Share:
Related CBOE
How Jefferies Is Playing 7 Major Brokerages & Exchanges Before Earnings
Credit Suisse Sees Some Positive Signs For Future Volumes For CBOE Holdings
Nasdaq Beats Q1 Earnings on Organic Growth; Ups Dividend - Analyst Blog (Zacks)

In a report published Wednesday, Compass Point Research & Trading initiated coverage on CBOE Holdings (NASDAQ: CBOE) with a Neutral rating and $30 price target.

Compass Point noted, “We are initiating coverage of CBOE with a Neutral rating and $30 price target. CBOE was the original pioneer of listed options and is now one of the largest options exchanges in the United States. Historical growth trends have been strong with US options ADV increasing 18% per year over the 2000-2011 period and CBOE ADV increasing 20% per year over the 2005-2011 period. 2012 industry volumes, however, were down year over year for the second time in the past 20 years. Despite the current softness, future growth prospects remain favorable supported by increasing buyside trading, the OTC opportunity, and international expansion. While we find the secular growth opportunity attractive, with the shares trading at ~17x our estimate of FY'13 EPS as compared to our FY'13 EPS CAGR forecast of 9%, we prefer to wait for a more attractive entry point. Our optimistic bias is supported by the company's zero debt balance sheet and takeout prospects.”

CBOE Holdings closed on Tuesday at $31.23.

Latest Ratings for CBOE

DateFirmActionFromTo
Apr 2015BarclaysMaintainsEqual-weight
Apr 2015Raymond JamesMaintainsOutperform
Apr 2015Deutsche BankMaintainsHold

View More Analyst Ratings for CBOE
View the Latest Analyst Ratings

Posted-In: Compass Point Research & TradingAnalyst Color Initiation Analyst Ratings

 

Related Articles (CBOE)

Around the Web, We're Loving...