RBC Capital analyst Ashish Sabadra maintains $Cboe Global Markets (CBOE.US)$ with a hold rating, and maintains the target price at $220.
According to TipRanks data, the analyst has a success rate of 57.0% and a total average return of 4.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Cboe Global Markets (CBOE.US)$'s main analysts recently are as follows:
In a recent overview of the financial sector, particularly focusing on brokers, asset managers, and exchanges, it was noted that alternative asset managers are facing beneficial secular tailwinds, while sectors involving retail and wealth management are deemed highly promising. However, the exchange segment might not appear as attractive in more buoyant markets, implying a potentially slower growth compared to other financial sectors like asset managers and selected brokers that are more sensitive to asset fluctuations. Furthermore, while policies might favor energy exchange ventures, growth prospects in other asset classes seem less convincing. The resilience in short-term rates is expected to bolster margin lending and other lucrative business areas, with a profitable retail customer base possibly sustaining an extended active period for retail traders.
Cboe Global Markets' revenue generation appears to be stagnating due to maturing trends within its notable SPX franchise, varied growth levels across VIX products, and market share decrement in U.S. equities and options. The slowdown of its Index franchise – responsible for a third of net revenue and a significant portion of its historical expansion – is said to overshadow other corporate initiatives. A modest growth projection in the mid-single-digit range for Cboe's future earnings is anticipated compared to its historically lower to mid-teen growth rates.
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