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CME Group Shares Gain Following Upgrade at Atlantic Equities -Breaking


© Reuters. CME Group (CME), Shares Gain After Atlantic Equities Upgrade

Sam Boughedda

Atlantic Equities’ analyst Simon Clinch elevated CME Group (NASDAQ.) on Friday from Neutral, to Overweight with a $235 target price.

This price target represents an opportunity to increase your chances of achieving 20% above current levels.

Clinch raised the stock due to a recent decline in its value “despite the strongest fundamental background of the US exchanges.”

The analyst stated that “Cash options and cash equities delivered on our expectations,” while the volumes in derivatives were mixed. CME has had its valuation corrected dramatically in the recent months. Its multiples have returned to historical median levels. At a time where fundamentals remain strong, CME is one of the strongest US exchange companies.

Atlantic originally downgraded the stock this year due to concern that inflation expectations would have driven its valuation past its underlying fundamentals.

But they believe much of this excess has now been eliminated and that the shares now provide an attractive return to target price supported by a forecasted dividend yield greater than 4%.

CME Group shares trade 1% higher Friday despite the initial drop earlier in session.