CME Group Cut to Hold at Deutsche Bank

Deutsche Bank's analysts shifted their stance on CME Group (NASDAQ:CME), moving from a Buy to a Hold rating and adjusting their target price down from $235 to $210. This decision stems from a revised expectation of modestly lower trading volumes.

This adjustment is based on both the reduced volumes observed towards the end of the first quarter and a projection of decreased market and rate volatility for the majority of this year. As a result, there's a 4-5% reduction in yearly EPS estimates, with the first quarter EPS forecast now slightly below consensus.

Although the full-year EPS estimate for 2024 still surpasses consensus by 3-4%, the anticipated slowdown in EPS growth to a mid-single-digit rate for 2024 and 2025 does not suggest a significant improvement in stock valuation within the next 12 months.