CME Group (CME): Recovery Begins Now*

Citi gets bullish on CME Group (CME) and thinks the stock has stopped plumeting. The stock’s collapse has led Citi to believe the risk/reward is finally attractive. Volumes are picking up and the bank sees consensus estimates at more rational levels.


The bank also sees the potential acquisition of NYMEX Holdings (NMX) as only a good thing, regardless of the outcome:

The uncertainty around the NMX acq has weighed on the shares, but we see NMX as a win/win scenario. A successful acquisition with price discipline provides CME with a key strategic asset and a failed bid would likely coincide with a large share repurchase, both scenarios good for the stock. Importantly, today’s DOJ approval provides validation for CME’s vertical model.

Citi upgrades CME Group (CME) from Hold to BUY, target price $485.

See Also:
Low Volumes For CME Make It Less Appealing, But Deutsche Bank Can’t Make Up Mind

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.

Tagged In