UPDATE: Argus Upgrades CME Group (CME) to Buy
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Argus analyst Stephen Biggar upgraded CME Group (NASDAQ: CME) from Hold to Buy with a price target of $230.00.
The analyst comments "We are raising rating on CME Group Inc. (NGS: CME) to BUY from HOLD and setting a price target of $230. We expect interest rate contract volume to increase as the Federal Reserve raises rates, and also look for steady growth in energy contract volume. In addition, we expect higher volume for agricultural contracts, newly launched cryptocurrency contracts, and new micro-contracts geared toward retail investors. We also expect the company to maintain strong cost controls. CME shares have risen strongly from their pandemic lows in March 2020 and are currently trading at 25-times our 2022 EPS estimate, at the midpoint of their five-year historical average range of 11-39 and near the peer average. Based on the current valuation and prospects for increased revenue due to market volatility, we believe that a BUY rating is now appropriate."
Shares of CME Group closed at $200.10 yesterday.
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