On Monday, Rosenblatt Securities adjusted its outlook on CBOE Holdings (NYSE:CBOE) shares, increasing the firm's price target to $205 from the previous $200, while reiterating a Buy rating on the stock.
The adjustment comes in response to a robust start in the second quarter of 2024, with CBOE experiencing record-level index options activity and the highest VIX futures volumes observed since the pandemic.
The firm's analysis indicates that the early performance in the second quarter is indicative of a strong momentum, which prompted the revision of the earnings per share (EPS) projections for 2024 and 2025 by 2%. This optimistic assessment of CBOE's financial prospects is reflected in the newly established price target.
CBOE's recent achievements in trading volumes are noteworthy, as they represent a significant uptick in activity compared to historical data. The record index options and VIX futures volumes are particularly significant, as they are measures of market volatility and investor interest in risk management tools.
The positive outlook by Rosenblatt is based on the firm's evaluation of CBOE's market position and financial performance. The maintained Buy rating suggests that the analyst firm believes CBOE's stock will continue to perform well and potentially offer a good investment opportunity.
The price target increase to $205 signifies Rosenblatt's confidence in CBOE's continued growth and success in the financial markets. This target is set with the expectation that the company will build on its strong start to the quarter and maintain its positive trajectory through 2024 and into 2025.
InvestingPro Insights
In light of Rosenblatt Securities' upbeat assessment of CBOE Holdings, current real-time data from InvestingPro further complements the firm's confidence in the company's financial health. CBOE's P/E ratio stands at a competitive 24.04, which, when paired with a PEG ratio of just 0.14, underscores the company's potential for growth relative to its earnings. Additionally, the firm's commitment to shareholder returns is evident, with a dividend yield of 1.26% and a history of raising its dividend for 9 consecutive years, reflecting a stable financial posture.
Moreover, InvestingPro Tips highlight that CBOE has maintained dividend payments for 15 consecutive years and is anticipated to remain profitable this year, as evidenced by its gross profit margin of 52.07% and operating income margin of 28.85%. These metrics not only validate Rosenblatt's positive outlook but also suggest that CBOE is well-positioned to leverage its market activities to sustain profitability and reward investors.
For investors seeking deeper insights and additional metrics, InvestingPro offers more InvestingPro Tips for CBOE, which can be accessed at https://www.investing.com/pro/CBOE. Utilize the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can find a total of 9 additional InvestingPro Tips to guide your investment decisions.
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