Deutsche Bank Upgrades CBOE Holdings (CBOE) to Hold

Deutsche Bank upgraded CBOE Holdings (NASDAQ: CBOE) from Sell to Hold with a price target of $73.00 (from $68.00).

Analyst Brian Bedell said, "The main driver of our upgrade is our updated view that investors will be much more focused on the long-term earnings accretion from the pending merger with BATS, expected to close in 1H17 but could close as early as 1Q17. We previously thought the stock’s valuation was stretched (see Figure 16) relative to our expectation for US equity market volatility to remain subdued in at least 1Q as the market remained bullish on the new administration’s pro-growth policies (supporting a further market rally nearterm). However, we now think investors will mostly ignore weak volatility metrics near-term and instead focus on potential for the BATS merger to close earlier than expected along with any upward merger synergy revisions. Moreover, we do see equity market volatility increasing at some point in the middle of 2017, which will be supportive for CBOE equity index and VIX futures volumes."

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 $75.09 yesterday.

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