CBOE Holdings (CBOE) PT Raised to $187 at Goldman Sachs
Goldman Sachs analyst Alexander Blostein raised the price target on CBOE Holdings (NYSE: CBOE) to $187.00 (from $186.00) while maintaining a Neutral rating.
The analyst comments "Following 2Q results, we revise our 2024/2025/2026 EPS estimates for CBOE to $8.45/$8.77/$9.37 from $8.41/$8.70/$9.28. We expect the robust momentum within the index options franchise to remain supportive of CBOE's revenue growth, as the firm's performance in SPX and VIX options (+19% y/y and +17% y/y in July) continues to point to wider adoption of the product and cyclical tailwinds from potentially higher volatility through the back half of the year. Additionally, we note that expansion of CBOE's product suite, both internationally and with new product launches, should continue to drive strong revenue growth. We also think CBOE's more focused approach on investing in the faster growing parts of the business and prudent expense management is a welcome move, resulting in a 6%-7% expense growth target for 2024 vs >10% over the last few years. We raise our 12-month price to $187 (from $186) on 21X Q5-Q8 P/E (unchanged), as we roll forward one quarter and reflective of a favorable backdrop for CBOE's proprietary products and expense discipline."