Jefferies Cuts Price Target on CBOE Holdings (CBOE), Maintains Hold Rating
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Price: $300.74 +2.25%
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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Jefferies is reiterating its Hold rating on shares of CBOE Holdings (NASDAQ: CBOE), but is lowering its price target by $1 to $26.
The firm reports that even against an improving backdrop for the options industry, volumes still remain strong. It notes that this is backed by accelerating growth on the C2 platform. Jefferies lowered its Q1 EPS estimate by $0.05 to $0.33 and its FY11 from $1.50 to $1.43 to go inline with its new forecasts.
Jefferies comments that the three-month rolling rate per contract continues to show a downward trend across both equity and ETF options segments because of a combination of higher volumes and a new pricing scheme introduced in Jan in which the company's largest customers who send more of their total order flow to CBOE get a price break.
An analyst at Jefferies said, "ADV at C2 now accounts for around 1.2% of total daily US options volumes, up from around 0.8% at the end of 4Q10. While the uptake has been relatively slow, the trajectory is nevertheless upwards and a reflection of the company's phased approach to adding new products. Currently SPX options products are not traded on C2 and are still awaiting final regulatory approval, something now anticipated to be sometime in 2Q11."
For more ratings news on CBOE Holdings click here and for the rating history of CBOE Holdings click here.
Shares of CBOE Holdings closed at $26.88 yesterday.
The firm reports that even against an improving backdrop for the options industry, volumes still remain strong. It notes that this is backed by accelerating growth on the C2 platform. Jefferies lowered its Q1 EPS estimate by $0.05 to $0.33 and its FY11 from $1.50 to $1.43 to go inline with its new forecasts.
Jefferies comments that the three-month rolling rate per contract continues to show a downward trend across both equity and ETF options segments because of a combination of higher volumes and a new pricing scheme introduced in Jan in which the company's largest customers who send more of their total order flow to CBOE get a price break.
An analyst at Jefferies said, "ADV at C2 now accounts for around 1.2% of total daily US options volumes, up from around 0.8% at the end of 4Q10. While the uptake has been relatively slow, the trajectory is nevertheless upwards and a reflection of the company's phased approach to adding new products. Currently SPX options products are not traded on C2 and are still awaiting final regulatory approval, something now anticipated to be sometime in 2Q11."
For more ratings news on CBOE Holdings click here and for the rating history of CBOE Holdings click here.
Shares of CBOE Holdings closed at $26.88 yesterday.
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