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UPDATE: J.P. Morgan Upgrades CME Group on 'Normalized Volume Analysis Suggests CME Over-Earning, but Volatility May Last'

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In a report published on Tuesday, J.P. Morgan analyst Kenneth B. Worthington upgraded CME Group (NASDAQ: CME) from Underweight to Neutral and raised the price target from $52 to $72.

In the report, J.P. Morgan stated, "While surging volume has appropriately driven the stock to recent highs, making our call clearly wrong, we hesitate to recommend the stock at this price and valuation level given the potential for volatility to stabilize and for volumes to normalize. When valuing the stock from here, we look to address what are normalized earnings. The thought is that while CME volumes have been depressed for some time, they are likely being overstated currently. However, even if CME is over-earning, we don't see the near-term catalyst for such volatility to wane. As such, we think the Neutral rating most appropriate."

CME Group closed on Monday at $76.06.

Latest Ratings for CME

DateFirmActionFromTo
Oct 2014Deutsche BankMaintainsBuy
Oct 2014Bank of AmericaMaintainsNeutral
Oct 2014CitigroupMaintainsNeutral

View More Analyst Ratings for CME
View the Latest Analyst Ratings

Posted-In: J.P. Morgan Kenneth B. WorthingtonAnalyst Color Upgrades Analyst Ratings

 

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