Hold Rating on Cboe Global Markets Amid Strong Performance and High Valuation

William Blair analyst Jeff Schmitt has maintained their neutral stance on CBOE stock, giving a Hold rating on July 16.

Jeff Schmitt has given his Hold rating due to a combination of factors surrounding Cboe Global Markets’ recent performance and market conditions. The company reported strong quarterly results with record revenue levels, driven by significant growth in its derivatives segment, which benefited from market volatility. Additionally, there was notable growth in cash and spot markets, particularly in Europe, which helped offset some weaknesses in the U.S. cash equities.
Despite these positive results, Schmitt believes that the current favorable market conditions are already reflected in the stock’s valuation, which is trading at a higher multiple than its historical average. He anticipates that once market conditions stabilize, the momentum in derivatives might slow down, potentially impacting earnings per share growth and leading to a reevaluation of the stock’s multiple. Therefore, he suggests a Hold rating as the stock’s current price may already account for the near-term positive factors.

According to TipRanks, Schmitt is a 4-star analyst with an average return of 13.5% and an 81.25% success rate. Schmitt covers the Financial sector, focusing on stocks such as Cboe Global Markets, LPL Financial, and SEI Investments Company.

In another report released on July 16, RBC Capital also maintained a Hold rating on the stock with a $220.00 price target.