UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on CME Group

In a report issued earlier today, J.P. Morgan & Co. reiterated its Neutral rating on CME Group Inc.

but lowered its price target from $270.00 to $263.00. J.P. Morgan went on to say “CME is a high quality company with high margins, strong cash flow generation, and strong competitive positioning. However, we don't expect that CME's stock will outperform peers, with the threat of downward earnings revisions for 2012. The numerous volatility driving events that elevated trading volume in 2011 may not repeat to the same degree in 2012. With 2Q volumes on the decline, we believe CME is at risk of stagnant volume growth in 2012, and is therefore at risk of being a source of funds for investors seeking to invest in other financials with far lower valuations than CME.” CME Group Inc. closed at $274.00 yesterday.