CME Group price target raised to $313 from $296 at Piper Sandler

Piper Sandler raised the firm’s price target on CME Group to $313 from $296 and keeps an Overweight rating on the shares. The firm notes Flutter Entertainment (FLUT) will launch its prediction markets offering – “FanDuel Predicts” – via a new app starting in December 2025. Notably, sports contracts will be included in the offering, but only in states where sports betting is currently illegal. Piper suspects CME (CME) will split all revenues from the offering with Flutter 50/50, but the latter will be on the hook for 100% of the cost to develop and market the app. Assuming Flutter and CME’s new offering reaches a similar size to the Robinhood (HOOD)-Kalshi partnership, the firm sees potential for $300M-plus revenues/year for CME, translating to 4%-5% EPS upside in 2026 and beyond.