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- Deutsche Bank downgraded CME Group (NASDAQ:CME) to Hold from Buy, reflecting expectations of “modestly lower” trading volume starting in Q2 2024, mostly within interest rates.
- “This is due to lower-than-expected volumes observed in late 1Q, but also our assumption of lower volatility in markets and rates for much of this year than previously assumed,” analyst Brian Bedell wrote in a note to clients.
- The lower volume forecast leads to a 4%-5% reduction in Deutsche’s annual EPS estimates for CME (CME). Bedell’s Q1 EPS estimate is now 1% below consensus, though his 2024 EPS estimate is 3%-4% above consensus.
- CME’s (CME) price target goes to $210 from $235.
- For the next 12 months, the analyst’s favorite subsector is alternative asset managers, with KKR (KKR) being his top pick; followed by online brokers, where Charles Schwab (SCHW) is favored.
- CME stock edged down 0.1% in Friday morning trading.
- Deutsche Bank’s Hold rating on CME aligns with the SA Quant rating and disagrees with the average SA Analyst rating and average Wall Street rating, both at Buy.