SPY383.63+6.93 1.84%
DIA315.24+5.66 1.83%
IXIC12,920.15+196.68 1.55%

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Cboe Global Markets, Inc.

· 02/05/2021 09:18

02:15 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our target price of $98 per share based on our DCF analysis assuming mid-single-digit top-line growth and stable margins. We raise our 2021 EPS estimate by $0.15 to $5.13 and by $0.30 to $5.36 for 2022. CBOE reported Q4 adjusted EPS of $1.21 vs. $1.21, $0.02 below consensus on revenue that was up 10% Y/Y and in-line with consensus. Option revenue was up 17% as average daily trading volume was up 41% but offset by rates per contract down 19%. Futures revenue was down 30% as volume and rates were lower while American Equities revenue shrank 2%. We were disappointed with the continued market share decline in both options and equities, but think shares have now declined to the point where expectations are low and think CBOE could surpass them, especially if volatility rises in 2021 or institutional buying comes back in. We note in January volume has already increased markedly in VIX futures and options.