CBOE (CBOE) Higher As Analyst Says Company Will Be Next In Exchange M&A Wave; Upgrades to Buy
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Price: $301.61 +2.55%
Rating Summary:
13 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
13 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of CBOE (NYSE: CBOE) are higher today after analysts at Credit Suisse upgraded the company from Neutral to Outperform, citing takeover potential.
Credit Suisse analyst H. Shen notes that historically, exchange consolidation has come in waves, and sees a large possibility of at least 1-2 more deals coming over the near term. CBOE is the most likely near-to-intermediate term takeout candidate, according to Chen.
Commenting on what makes CBOE an attractive target, Chen notes, "We view the company's fast-growing U.S. options footprint, flagship proprietary index options business (SPX, VIX), meaningful postdemutualization earnings ramp-up and opportunity to realize economies of scale as all reasons why CBOE should be a participant in this round of industry consolidation."
The firm raised their price target from $25 to $32 and ascribe a 60% probability of a takeover. Shares could be worth $33-$35 in a takeover.
Shares of CBOE are up 2.6% today on the upgrade.
Credit Suisse analyst H. Shen notes that historically, exchange consolidation has come in waves, and sees a large possibility of at least 1-2 more deals coming over the near term. CBOE is the most likely near-to-intermediate term takeout candidate, according to Chen.
Commenting on what makes CBOE an attractive target, Chen notes, "We view the company's fast-growing U.S. options footprint, flagship proprietary index options business (SPX, VIX), meaningful postdemutualization earnings ramp-up and opportunity to realize economies of scale as all reasons why CBOE should be a participant in this round of industry consolidation."
The firm raised their price target from $25 to $32 and ascribe a 60% probability of a takeover. Shares could be worth $33-$35 in a takeover.
Shares of CBOE are up 2.6% today on the upgrade.
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