CME Group stock price target raised to $275 from $265 at Citi

Published 03/07/2025, 10:54
CME Group stock price target raised to $275 from $265 at Citi

Investing.com - Citi has raised its price target on CME Group (NASDAQ:CME) to $275.00 from $265.00 while maintaining a Neutral rating on the stock. The stock, currently trading near $276, has delivered an impressive 47% return over the past year and sports a P/E ratio of 27.7x.

CME Group achieved record quarterly average daily volume (ADV) of 30.2 million contracts in the second quarter, representing a 16% year-over-year increase and a 2% sequential rise. The growth was seen across all asset classes, with record volumes specifically in rates, agriculture, and metals. According to InvestingPro data, this performance has contributed to the company’s robust 11.7% revenue growth over the last twelve months.

Citi noted that volume trends have moderated from the elevated levels seen in April, as expected, but open interest has remained strong, up 7% year-over-year, which could support trading activity going forward.

The firm expects activity levels to continue moderating in the third quarter but believes CME is well-positioned to benefit from any pickup in volatility due to its asset diversity and depth of liquidity on the platform.

Despite the price target increase, Citi views current valuations as representing a balanced risk/reward profile and prefers to wait for a more attractive entry point before becoming more positive on the stock.

In other recent news, CME Group reported a record quarterly average daily volume of 30.2 million contracts in the second quarter of 2025, marking a 15% increase year-over-year. This growth was driven by strong performances across various product categories, including interest rates, agriculture, metals, and SOFR futures. Additionally, CME Group announced plans to launch E-Mini S&P BMV IPC Index futures in August, pending regulatory review, which will offer exposure to Mexico’s main equity index. Analysts at Raymond (NSE:RYMD) James raised their price target for CME Group to $306, citing the company’s robust suite of risk management tools and solid trading volumes amid volatile conditions. Meanwhile, UBS reiterated a Buy rating for CME Group, maintaining a price target of $305, despite adjusting their earnings per share estimate for Q2 2025 to $2.95. UBS analysts continue to forecast a 20% growth in futures volume for the second quarter, highlighting strong activity levels at BrokerTec and EBS. These developments reflect CME Group’s ongoing adaptability and strategic positioning in the market.

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