RBC Capital analyst Ashish Sabadra initiates coverage on $CME Group (CME.US)$ with a hold rating, and sets the target price at $235.
According to TipRanks data, the analyst has a success rate of 61.4% and a total average return of 6.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $CME Group (CME.US)$'s main analysts recently are as follows:
CME Group has not matched the performance of its peers due to worries about a competing exchange, FMX, capturing market share and the possible reduction in interest rate futures trading volume following the cycle of rate cuts. While competitive challenges seem controllable and are considered in the current valuations, and higher Treasury issuance is expected to offer secular support in the medium to long term, the stock may remain within a certain trading range until there is a shift in the overarching story or a revision of the capital allocation strategy.
CME Group is recognized for its notable presence, running a leading pure-play derivatives platform that delivers substantial margins and free cash flow, and there's the possibility of a more evenly distributed capital return approach on the horizon. Nevertheless, it is anticipated that the stock will stay within a certain range in the intermediate term as investors deal with a trio of concerns: the possible challenge to its dominant position in interest rate derivatives, the slowing pace of daily volume in interest rates, and an increase in index volatility.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
