UPDATE: Oppenheimer Upgrades CME Group (CME) to Outperform
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Oppenheimer analyst Owen Lau upgraded CME Group (NASDAQ: CME) from Perform to Outperform with a price target of $223.00.
The analyst comments "We are upgrading CME from Perform to Outperform and introducing a price target of $223. The upgrade is predicated upon our assumption that no extreme events and recession are imminent, and there is a defensive angle in this call in light of current volatility and uncertain environment. Our upgrade thesis has come down to four key points: 1) attractive valuation; 2) rising interest rate with low balance sheet risk; 3) appealing dividend policy; and 4) high margin and healthy growth profile. We are probably still in the early days of this rate hike cycle, which could bode well for CME as the interest rate franchise makes up 25% of firm-wide revenues providing an uplift to earnings and revenues."
Shares of CME Group closed at $191.67 yesterday.
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