UBS on U.S. Exchanges: Fresh Perspective on OTC Opportunities - Major Beneficiaries Include CME, ICE
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Price: $75.96 -1.71%
Rating Summary:
6 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
6 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade CME Now!
UBS on U.S. Exchanges: Fresh Perspective on OTC Opportunities
Analyst, Alex Kramm, said, "OTC derivatives reform has been at the forefront of many discussions involving exchanges over the last couple of years. With regulatory reform seemingly in the final innings, we believe it is prudent to provide our most recent views on the timing of new regulations and the implications for the companies in our coverage. We believe CME Group (NYSE: CME) and IntercontinentalExchange (NYSE: ICE) will be the largest near-term beneficiaries. We are raising our price targets as improved visibility should drive multiple expansion."
Kramm sees OTC swaps clearing/interest rate swaps adding up to $500 million in revenues (25% to earnings) for CME in the intermediate term. CDS, Energy and Others offer a sizable opportunity to bolster ICE.
Kramm rates CME at a Buy and raises his price target from $60 to $69. Buy-rated ICE gets a price target bump from $153 to $169.
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Analyst, Alex Kramm, said, "OTC derivatives reform has been at the forefront of many discussions involving exchanges over the last couple of years. With regulatory reform seemingly in the final innings, we believe it is prudent to provide our most recent views on the timing of new regulations and the implications for the companies in our coverage. We believe CME Group (NYSE: CME) and IntercontinentalExchange (NYSE: ICE) will be the largest near-term beneficiaries. We are raising our price targets as improved visibility should drive multiple expansion."
Kramm sees OTC swaps clearing/interest rate swaps adding up to $500 million in revenues (25% to earnings) for CME in the intermediate term. CDS, Energy and Others offer a sizable opportunity to bolster ICE.
Kramm rates CME at a Buy and raises his price target from $60 to $69. Buy-rated ICE gets a price target bump from $153 to $169.
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