CME Group stock price target raised to $306 from $297 at Raymond James

Published 02/07/2025, 17:08
CME Group stock price target raised to $306 from $297 at Raymond James

Investing.com - Raymond (NSE:RYMD) James has raised its price target on CME Group (NASDAQ:CME) to $306.00 from $297.00 while maintaining an Outperform rating on the stock. The new target represents potential upside from the current price of $274.25 for the $99 billion market cap exchange operator.

The firm cited CME Group’s suite of risk management tools as positioning the company well amid volatile global macroeconomic and geopolitical conditions, which has been reflected in solid recent trading volumes.

Raymond James noted that rate futures volumes are trending better than anticipated, although these trends are showing signs of cooling. The analyst highlighted that volatility has boosted these volumes.

CME’s energy futures franchise continues to serve as a tailwind, reversing several years of decline, with Raymond James increasingly viewing this momentum as sustainable.

The firm sees upside opportunity for CME’s valuation multiple given fading concerns about the competitive landscape and the impact of Federal Reserve rate cuts, and views the risk/reward profile as attractive. According to InvestingPro, CME Group currently trades at a P/E ratio of 27.25, reflecting the market’s confidence in its growth trajectory. Get access to over 30 additional key metrics and insights with InvestingPro’s comprehensive analysis tools.

In other recent news, CME Group reported a record quarterly average daily volume of 30.2 million contracts for the second quarter of 2025, marking a 15% increase from the previous year. The company set new records in several product categories, including interest rates and SOFR futures. Additionally, CME Group announced the upcoming launch of E-Mini S&P BMV IPC Index futures on August 18, pending regulatory review, providing exposure to Mexico’s main equity index. In terms of analyst ratings, UBS reiterated a Buy rating for CME Group stock, despite adjusting their earnings per share estimate for the second quarter to $2.95 due to trends in futures pricing. They still anticipate a 20% growth in futures volume for the quarter. Barclays (LON:BARC) maintained an Equalweight rating on CME Group stock, noting a 4% increase in combined revenues from BrokerTec and EBS in April. Furthermore, S&P Global Ratings upgraded CME Media Enterprises to ’BB-’ from ’B+’, citing improved financial performance and reduced debt levels. These developments highlight CME Group’s ongoing expansion and strong performance in various market segments.

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