CME Group Added to Goldman’s “Conviction Buy” List (CME)
Futures exchange operator CME Group Inc. ( CME ) 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. ( CME ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.