UPDATE: JP Morgan Raises PT to $55 on CME Group on Competitive Positioning

JP Morgan reiterated its Underweight rating on CME Group

but raised its price target from $54 to $55. JP Morgan noted, "CME is a high quality company, in our view, with high margins, strong cash flow generation, and strong competitive positioning. However, we don't expect that CME's stock will continue to outperform peers', given deteriorating fundamentals and perhaps loftier expectations of the OTC clearing opportunity than we think are realistic. The issue is that the core businesses continue to face headwinds and Wall Street estimates continue to move downwards reflecting this, but the stock keeps moving higher. The risk to the upside, in our mind, is that a potential QE3 lifts volumes in the short term, although looking at past periods of quantitative easing, volume increases have not appeared to be sustainable." CME Group closed at $57.10 on Tuesday.