Why This CBOE Global Markets Analyst Is Bullish At Time Of Geopolitical Turmoil
Portfolio Pulse from Piero Cingari
Piper Sandler has reiterated an Overweight rating for CBOE Global Markets Inc. (NYSE:CBOE) with a $174 price target, citing the company's potential to benefit from the current geopolitical turmoil. Over 70% of CBOE's revenue comes from transaction and clearing fees on its options market, and its SPX and VIX derivative products are expected to see increased demand due to the uncertainty. The unexpected resignation of CEO Ed Tilly has also sparked speculation about a potential sale of the company, which could boost its share price.
October 09, 2023 | 7:47 pm
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Piper Sandler's Overweight rating and the potential for increased demand for CBOE's derivative products amid geopolitical uncertainty could boost the company's stock. Speculation about a potential sale following the CEO's resignation could also provide a lift.
Piper Sandler's Overweight rating indicates a positive outlook for CBOE's stock. The geopolitical uncertainty is expected to increase demand for CBOE's derivative products, which make up a significant portion of its revenue. This increased demand could drive up the company's revenue and, in turn, its stock price. Additionally, speculation about a potential sale of the company following the CEO's resignation could create a 'higher floor' for its shares, providing further support for the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100