Raymond James reiterates Market Perform rating on CBOE stock

Published 07/07/2025, 18:12
Raymond James reiterates Market Perform rating on CBOE stock

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on CBOE Holdings (NYSE:CBOE) ahead of the company’s second-quarter 2025 financial results, due in 25 days. According to InvestingPro analysis, CBOE is currently trading slightly above its Fair Value, with the stock near its 52-week high of $240.81.

The investment firm expressed uncertainty about whether CBOE’s index options complex, specifically SPX and VIX products, can maintain its recent pattern of outsized growth.

Raymond James noted that without continued strong performance in these proprietary products, CBOE would need to rely more heavily on non-proprietary products, which have shown improved but inconsistent growth in recent years.

The firm also pointed to CBOE’s Data Vantage business as a potential growth driver, while acknowledging it currently represents a relatively small portion of the company’s overall revenue stream.

Raymond James cited concerns about the durability of CBOE’s growth profile as the primary reason for maintaining its neutral stance on the stock.

In other recent news, Cboe Global Markets announced the migration of its bitcoin and ether futures from the Cboe Digital Exchange to the Cboe Futures Exchange. This move is designed to consolidate all U.S. futures products onto a single platform, enhancing customer access and efficiency. Additionally, Cboe reported mixed trading volumes for May 2025, with a notable year-over-year increase in multiply-listed options contracts and a decline in futures contracts. The company also disclosed executive leadership changes, with Dave Howson resigning as Executive Vice President and Global President, while Cathy Clay and Chris Isaacson will assume expanded roles.

In analyst updates, Morgan Stanley (NYSE:MS) downgraded Cboe’s stock rating to underweight and reduced the price target to $215, citing concerns over potential impacts from declining volatility. Conversely, UBS raised its price target for Cboe to $245 while maintaining a neutral rating, following stronger-than-expected first-quarter results. The firm highlighted Cboe’s growth potential, especially in expanding its market reach among retail and overseas investors. These developments reflect the dynamic environment in which Cboe operates and its ongoing efforts to adapt and grow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.