UBS reiterates Buy rating on CME Group stock, maintains $305 price target

Published 03/07/2025, 15:02
UBS reiterates Buy rating on CME Group stock, maintains $305 price target

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.

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.