Compass Point Starts CME Group (CME) at Neutral; 'Fairly Valued'
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Price: $264.48 --0%
Rating Summary:
12 Buy, 12 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 9 | New: 44
Rating Summary:
12 Buy, 12 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 9 | New: 44
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Compass Point initiates coverage on CME Group (NASDAQ: CME) with a Neutral and $55 price target, saying the stock is fairly valued.
The firm comments, "CME Group is the world's leading and most diverse derivatives marketplace. The business produces healthy margins that rank near the top of the S&P 500. Free cash flow is significant and has increased meaningfully from $128 million in 2003 to $1,174 million in 2011. Specific future growth drivers include globalization, the convergence of OTC and exchange-traded markets, and co-location services. However, competition from ICE is building and today's volume environment is tepid. Trading at 17x our estimate of FY'13 EPS with a projected 5.2% dividend yield, we consider the shares fairly valued."
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 $52.90 yesterday.
The firm comments, "CME Group is the world's leading and most diverse derivatives marketplace. The business produces healthy margins that rank near the top of the S&P 500. Free cash flow is significant and has increased meaningfully from $128 million in 2003 to $1,174 million in 2011. Specific future growth drivers include globalization, the convergence of OTC and exchange-traded markets, and co-location services. However, competition from ICE is building and today's volume environment is tepid. Trading at 17x our estimate of FY'13 EPS with a projected 5.2% dividend yield, we consider the shares fairly valued."
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 $52.90 yesterday.
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