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Investing.com - UBS maintained its Buy rating on CME Group (NASDAQ:CME) with a price target of $305.00, according to a research note released Thursday. The stock, currently trading at $275.83, is approaching its 52-week high of $290.79, with InvestingPro data indicating the company is slightly overvalued at current levels.
UBS analyst Alex Kramm lowered the second-quarter 2025 earnings per share estimate to $2.90 from $2.95, below the Street consensus of $2.97, primarily due to lower futures volumes. Despite this adjustment, InvestingPro data shows 4 analysts have recently revised their earnings estimates upward for the upcoming period.
The downward revision follows CME’s June metrics release, which showed futures average daily volume in the second quarter was 3% lower than UBS had expected, driven mostly by softer interest rate and equity index activity.
Despite the volume shortfall, UBS raised its pricing assumptions by 1% based on more favorable business mix and improved rate-per-contract trends in four out of six asset classes.
The firm remains constructive on CME Group stock, citing potential upside to volume expectations from further geopolitical and macroeconomic uncertainty, while noting that the current valuation remains attractive.
In other recent news, CME Group reported a record quarterly average daily volume (ADV) of 30.2 million contracts in the second quarter, marking a 15% year-over-year increase. This growth was driven by significant performances in interest rates, agriculture, metals, and SOFR futures. Additionally, CME Group is set to launch E-Mini S&P BMV IPC Index futures on August 18, pending regulatory review, which will track Mexico’s main equity index. Analyst firms have responded to these developments, with Citi raising its price target for CME Group to $275, maintaining a Neutral rating, and Raymond (NSE:RYMD) James increasing its target to $306 with an Outperform rating. Citi noted a moderation in volume trends but highlighted strong open interest, while Raymond James emphasized CME’s robust risk management tools amid volatile conditions. Raymond James also pointed out that CME’s energy futures franchise has shown sustainable momentum. Meanwhile, S&P Global Ratings upgraded CME Media Enterprises to ’BB-’ from ’B+’, citing improved financial performance and reduced debt levels. S&P expects continued growth in subscription revenue and a stable outlook for the company’s linear TV operations.
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