Futures exchange operator CME Group Inc. (
) on Monday saw its shares added to Goldman Sachs' prestigious
"Conviction Buy" List.
The firm also set a $380 price target on the stock, which had
closed at $318.51 on Friday. That target implies a 19% upside to
the stock's current price.
Additionally, Goldman raised its second quarter earnings
forecast to $4.42 per share from $3.92, citing positive volume
trends. The analyst also noted the stock will "take advantage of
its position as one of the leading clearing houses globally with
trading exposure to interest rates, foreign exchange, and equities;
the firm is positioned to offer transparency and clearing value to
regulators and client."
CME shares were mostly flat in premarket trading Monday.
The Bottom Line
We recently removed shares of CME from our recommended list on May
6, when the stock was trading at $324.67. Shares of CME have a
1.44% dividend yield, based on Friday's closing stock price of
$318.51. The stock has technical support in the $300-$310 price
area. If the shares can firm up, we see overhead resistance around
the $330 price level. We would remain on the sidelines for now.
CME Group Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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