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UBS Maintains a 'Buy' on CME Group (CME); Market Hails New Capital Return Strategy

February 3, 2012 1:15 PM EST
CME Hot Sheet
Rating Summary:
    7 Buy, 7 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 23
UBS maintains a 'Buy' on CME Group (NASDAQ: CME) price target lowered from $325 to $311.

UBS analyst says, "CME's shares gained significantly yesterday (+8%). We believe CME’s new capital return strategy drove the upside, as 4Q11 results were in line at best. While some will look at the significant increase in the company’s dividend as another sign that CME is no longer a growth story (a view we do not share), we believe the shares should move higher as a different investor base embraces the stock for the first time. We view CME as a cyclically-depressed growth story that can offer a significant dividend yield (4.5%; 3.4% ex variable part) given strong fundamentals."

UBS Lowering FY12 EPS to $18.32 from $19.00 and FY13 to $21.44 from $22.38.

For an analyst ratings summary and ratings history on CME Group click here. For more ratings news on CME Group click here.

Shares of CME Group closed at $266.01 yesterday, with a 52 week range of $224.69-$317.27.


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