CME Group Downgraded: Analyst Sees Cutthroat Competition From BGC Group, Cboe Global & Intercontinental Exchange
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BofA Securities analyst Craig Siegenthaler downgraded CME Group Inc (NASDAQ:CME) to Underperform from Neutral, lowering the price target from $212 to $177.
The company now faces competition on three fronts from BGC Group, Inc. (NASDAQ:BGC), Cboe Global Markets, Inc. (BATS:CBOE), and Intercontinental Exchange Inc. (NYSE:ICE). This intensifying rivalry could result in market share losses and pricing pressures, the analyst cautions.
The analyst projects CME to reduce its pricing on interest rate futures by over 10% as a defensive strategy, given the imminent launch of BGC’s FMX Futures Exchange.
Additionally, the analyst forecasts a 15% CAGR for CBOE’s index …
Full story available on Benzinga.com
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