|Back to main|
Wells Fargo Starts Coverage on CME Group as “Market Perform” (CME)
10/15/2010 8:40:00 AM
Analysts at Wells Fargo on Friday initiated coverage on futures exchange operator CME Group Inc.( CME ) , noting they see a flat risk/reward at current levels.
The firm set a "Market Perform" rating on CME with a valuation range of $280-290. That range represents a 6% to 9% upside to the stock's Thursday closing price of $264.93.
A Wells Fargo analyst commented, "CME possesses dominant share across its products and we favorably view its futures intensive franchise. However, we view the shares as fairly valued given our near term concerns regarding weak economic conditions…Given the uncertain economic outlook, we view the risk / reward as balanced. We are introducing 2010, 2011 and 2012 EPS estimates of $15.37, $17.03 and $19.46, respectively."
CME Group shares were mostly flat in premarket trading Friday.
The Bottom Line
CME Group Inc.( CME ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.