Deutsche Bank Upgrades CBOE Holdings (CBOE) to Buy

Deutsche Bank analyst Brian Bedell upgraded CBOE Holdings (NYSE: CBOE) from Hold to Buy with a price target of $222.00 (from $212.00).

The analyst comments "We are upgrading Cboe Global Markets (CBOE) to Buy from Hold and raising our price target to $222 from $211. Our upgrade is driven by our revised view that CBOE will maintain healthy revenue growth in at least 2025, supported by our belief that equity markets may remain volatile over the intermediate term post the US election results, at least episodically, driving greater use of index & volatility options & futures products. In addition, we believe revenue growth will also be supported organically, via continued product innovation and greater adoption of options usage, including from the launch of index options coming soon at Robinhood (HOOD-Buy). We also think stronger revenue growth will enable positive operating leverage next year, allowing mgmt. to outperform its expectations of operating margin stability, as cited on the recent 3Q earnings call. Combined with at least a modest level of share repurchases, this should enable at least high single digit EPS growth in 2025 & '26, compared with our prior low-mid single digit growth assumptions. In addition, CBOE shares have been the worst performing stock in our coverage in 4Q so far, and have underperformed the S&P 500 and most stocks in our coverage YTD - driving its valuation to about one standard deviation below its average over the past 1, 3 & 5-years."

For an analyst ratings summary and ratings history on CBOE Holdings click here. For more ratings news on CBOE Holdings click here.

Shares of CBOE Holdings closed at $196.86 yesterday.

You May Also Be Interested In

• JPMorgan Upgrades Akamai Technologies (AKAM) to Neutral 'on Account of Confidence in Revenue Reacceleration'
• JPMorgan Assumes salesforce.com (CRM) at Overweight, 'Overblown Concerns'
• HSBC Upgrades Keurig Dr Pepper (KDP) to Buy