Barclays on CBOE Holdings (CBOE): 'Q2 Transaction Revenues Appear In Line with Consensus'

Barclays analyst Benjamin Budish reiterated an Overweight rating and $382.00 price target on CBOE Holdings (NYSE: CBOE).

The analyst comments "June / Q2 takeaways include the following: • Q2 ADV was 4% ahead of consensus for index options and 10% for multiply-listed options, and generally ahead across other products. ADV for index options, the largest component of transaction revenues, rose 32% y/y in Q2 and were 4% ahead of the Street for the quarter. Multiply-listed options rose 24% y/y in Q2, less than market volumes, as market share fell 52 bps y/y (though rose 128 bps q/q), and were 10% ahead of the Street. Elsewhere, all other product ADV rose y/y (except on-exchange cash equities) and were mostly ahead of the Street (except futures, which came in 6% below consensus). In terms of individual products, we note that in Q2 SPX ADV rose 40% y/y and XSP rose 80%, though VIX options ADV declined 5%. In June specifically, activity rose sequentially across SPX (+5%) and XSP (+37%), though declined for VIX (-1%). • Preliminary total options RPC fell 8% q/q and were 5% below Q2 Street estimates; average RPC was mixed across other products. Index options RPC was $0.95 for Q2, 1% ahead of our estimate, while total options RPC came in ~5% below consensus, driven by a sequential decline in multiply-listed options RPC (-19% q/q). Based on the preliminary RPC, the benefit from a higher index options RPC was about offset by lower multiply-listed RPC, and options transaction revenues are likely to come in ~4% ahead of consensus. Elsewhere, results were a bit mixed vs. the Street (e.g., US equities a bit worse than the Street), and we calculate based on preliminary RPC that total net transaction revenues of $557M appear to be in line with the consensus estimate."

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 $245.08 yesterday.

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