Morgan Stanley analyst Michael Cyprys has maintained their bullish stance on CME stock, giving a Buy rating yesterday.
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Michael Cyprys has given his Buy rating due to a combination of factors that suggest a positive outlook for CME Group. The anticipated changes in interest rates, coupled with global economic challenges such as growing deficits and supply chain disruptions, are expected to drive an increased need for risk management and hedging, thereby supporting volume growth beyond current expectations. Despite a normalization in volatility, ongoing geopolitical tensions and tariff negotiations present uncertainties that could impact various asset classes, reinforcing CME’s position as a leader with deep liquidity pools, which is a competitive advantage.
Additionally, Cyprys highlights the potential for accelerated volume growth in the rates complex, with significant year-over-year increases projected for 2025 and 2026, driven by debates around inflation and interest rate trajectories. The company’s defensive revenue streams and strong balance sheet further bolster its position, making CME shares a more secure investment amid economic fluctuations. Overall, these factors contribute to a favorable growth outlook, with expectations of substantial increases in revenue and earnings per share in the coming years.
According to TipRanks, Cyprys is a 4-star analyst with an average return of 4.2% and a 53.52% success rate. Cyprys covers the Financial sector, focusing on stocks such as BlackRock, CME Group, and LPL Financial.
In another report released yesterday, Raymond James also maintained a Buy rating on the stock with a $309.00 price target.