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Investing.com - UBS downgraded CME Group (NASDAQ:CME) from Buy to Neutral on Thursday, while maintaining a price target of $305.00. According to InvestingPro data, CME is currently trading near Fair Value, with a P/E ratio of 27.75.
The downgrade follows CME’s strong year-to-date performance, with shares up 20.19%, outpacing the broader market as geopolitical uncertainty drove trading volumes higher over the past year. The stock offers a 3.91% dividend yield, having maintained dividend payments for 23 consecutive years.
UBS noted that trading activity has begun to slow, with volumes down 13% year-over-year in June, while the company faces increasingly difficult comparisons in upcoming quarters.
While UBS acknowledged that structural growth drivers remain intact, particularly increased retail trading, the firm expressed skepticism about significant near-term upside potential from these factors.
The downgrade was accompanied by reduced forward estimates, with UBS now projecting earnings 9% below consensus for the third quarter of 2025 and 2% below for the full fiscal year 2025.
In other recent news, CME Group reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.96, compared to the forecasted $2.93, and generated revenue of $1.7 billion, exceeding the projected $1.68 billion. Raymond (NSE:RYMD) James responded by raising its price target for CME Group to $309 from $306 while maintaining an Outperform rating. The firm highlighted CME Group’s comprehensive suite of risk management tools as a key factor in its favorable outlook, particularly in the context of global macroeconomic uncertainty. These developments suggest potential upside to forward estimates if market volatility increases. Investors are closely watching these recent achievements and analyst perspectives as they evaluate CME Group’s future prospects.
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