Gold prices slip slightly after recent gains; U.S. data eyed
Investing.com - RBC Capital has raised its price target on CBOE Holdings (NYSE:CBOE) to $254.00 from $220.00 while maintaining a Sector Perform rating on the stock. The stock is currently trading near its 52-week high of $245.21, and according to InvestingPro analysis, appears to be slightly overvalued at current levels.
The firm cited CBOE’s DataVantage segment as a key growth driver, noting it was instrumental in the company’s revenue upside surprise during the second quarter of 2025. DataVantage and Cash Equities delivered double-digit growth during the period, contributing to CBOE’s impressive 19% year-over-year revenue growth and maintaining strong liquidity with a current ratio of 1.57.
RBC Capital highlighted CEO Craig Donohue’s disciplined approach to capital allocation, evidenced by the closure of CBOE’s Japanese equities business. This move, along with other operational efficiency measures, allowed the company to reduce its expense guidance by $5 million despite higher incentive compensation costs.
The analyst noted that CBOE’s transformational Information Services (NASDAQ:III) acquisition could enhance DataVantage’s strategic positioning, diversify the business, and help address concerns about a potential slowdown in SPX options.
CBOE continues to focus on operational discipline while pursuing growth opportunities, according to RBC Capital’s assessment of the company’s current business strategy.
In other recent news, Cboe Global Markets reported strong financial results for the second quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $2.46, slightly above the forecast of $2.44. Revenue also surpassed predictions, reaching $587.3 million compared to the anticipated $576.1 million. This robust performance was driven by growth across several segments, including a 17% increase in Derivatives Markets and an 11% rise in both Data Vantage and Cash & Spot Markets. Following these impressive results, Oppenheimer raised its price target for Cboe to $265 from $253, maintaining an Outperform rating. These developments highlight the company’s continued growth and successful execution of its business strategies.
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