JPMorgan Upgrades CBOE Holdings (CBOE) to Neutral

JPMorgan analyst Kenneth Worthington upgraded CBOE Holdings (NYSE: CBOE) from Underweight to Neutral with a price target of $195.00 (from $168.00).

The analyst comments: "We are upgrading CBOE following its 2Q24 results. We had maintained an underweight rating concerned about decelerating trends in VIX and SPX open interest and the maturization of 0DTE trading. We think the trends of slowing trading volume growth and decelerating open interest were exacerbated if not driven by the lower volatility environment with VIX generally in a range of 12-15 for most of 2024. We see a period of higher volatility driving greater activity is flagship CBOE products including VIX and SPX options. While we see prospects more promising for CBOE flagship volumes, we remain cautious about the maturation of 0DTE and are skeptical about the launch of index options on Robinhood. Nonetheless, CBOE reported solid 2Q24 earnings and we are a big, but quiet fan of new CEO Fred Tomczky and the early steps he's taking since leading CBOE beginning late last year. We increase our projections as we see higher volatility driving greater activity levels in VIX, SPX and options broadly, and modestly higher valuations as investors get somewhat more defensive."

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 $193.79 yesterday.

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