Citi downgrades CME to neutral on slower growth outlook

Investing.com -- Citigroup downgraded CME Group Inc (NASDAQ: CME) to "neutral" on expectations of slower growth following two years of double-digit top-line expansion.

“After two solid years of double-digit top-line growth, we expect to see more muted growth this year,” analyst said.

The firm forecasts a more muted 4% revenue growth in 2025, despite strong fundamentals in rates and energy markets. Citi noted CME’s defensive appeal in a volatile environment but prefers a better entry point or clearer catalysts for fresh investment.

“We expect the stock to hold given its defensive qualities in what we expect to be a volatile environment but prefer to wait for a better entry point and/or clearer fundamental catalysts to put new money to work in it from here.”

Citi lowered its price target to $250, reflecting a valuation of 22.4x its 2026 earnings estimate, slightly below CME's three-year forward price-to-earnings average.

The bank revised its 2025 EPS estimate to $10.47 from $10.56 and introduced a 2027 forecast of $11.86, citing updated volume and pricing trends.

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