BofA Securities Upgrades CME Group (CME) to Buy on Improving Outlook
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(Updated - March 24, 2021 6:43 AM EDT)
BofA Securities analyst Michael Carrier upgraded CME Group (NASDAQ: CME) from Neutral to Buy with a price taret of $220 (from $200) on an improving outlook.
The analyst commented, "We are upgrading CME to Buy from Neutral given our expectation of an improving backdrop for revenues ahead, as well as an attractive yield. We see an improving revenue backdrop as we get past a 1H20 tough volume comp, the economy rebounds & interest rate expectations are on the rise, and as rates head higher, volatility and volumes across asset classes will likely be elevated as well. We increase our PO to $220 from $200 on a higher multiple (target of 34x vs. 31x on ’21E or 30x on ’22E, in line with the past when the multiple expanded ~20% ahead of rate cycles), given our expectation for accelerating growth in 2H21 and ’22 and beyond."
Shares of CME Group closed at $199.93 yesterday.
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