Market Overview

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

Share:
Related CME
CME Group, Multi Commodity Exchange of India sign MoU
Goldman Sachs Downgrades Ameriprise Financial, Virtus On 'Weak Flows' And Retail Risks
CBOE Holdings Q2 Earnings Beat as Topline Rises; Ups Dividend - Analyst Blog (Zacks)

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

View More Analyst Ratings for CME
View the Latest Analyst Ratings

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

 

Related Articles (CME)

Get Benzinga's Newsletters