Volatility Positive for Exchanges, Goldman Raises CBOE (CBOE) to Buy, CME (CME) to Neutral

Goldman Sachs upgraded CBOE Holdings (NASDAQ: CBOE) from Neutral to Buy with a price target of $47.00.

"We view CBOE as a direct beneficiary of the recent spike in market volatility, given the company's proprietary VIX products, which we expect will drive upside to revenues, margins and capital return potential in the coming months. We raise our 2013/2014 EPS estimates to $2.05/$2.40 from $1.95/$2.20 and introduce 2015 EPS estimate of $2.60. We are now 8% above consensus on average," said analyst Alexander Blostein.

CME Group Inc. (Nasdaq: CME) was upgraded to Neutral from Sell with a modified price target of $70 (from $50).

"While we still see modest (9%) downside to CME and think the stock is already pricing in the bull case, the ongoing rates debate and steepening yield curve will likely drive volumes and EPS revisions higher and we lack a catalyst to stay negative," said Blostein.

For an analyst ratings summary and ratings history on CBOE Holdings (NASDAQ: CBOE) click here. For more ratings news on CBOE Holdings click here.

Shares of CBOE Holdings closed at $42.61 yesterday, with a 52 week range of $26.76-$43.77.

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW *NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here begin ad tag (tile=12) -- End ad tag --

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks