The consensus analyst price target for Cboe Global Markets has increased slightly from $247.47 to $250.63, as analysts weigh recent shifts in fee structures, options revenue capture, and expectations for stable profit margins and improved growth trends.
Analyst Commentary
Recent analyst updates reflect a mix of optimism and caution regarding Cboe Global Markets' near-term outlook and strategic direction. The following perspectives summarize these views:
Bullish Takeaways- Some bullish analysts are increasing their price targets, noting Q3 volume growth in the company's futures and options products. Options volumes have shown resilience despite declining volatility.
- There is optimism surrounding potential growth opportunities in emerging areas such as tokenization, prediction markets, and global capital markets activity.
- Cboe's unique channel mix and strong presence in retail options are seen as factors helping it maintain volumes even as other exchanges face a pullback.
- Improved growth trends and the company's continued focus on strategic execution contribute positively to overall long-term valuations.
- Bearish analysts are lowering fee rate estimates due to a significant quarter-over-quarter decline in multi-listed options revenue capture. This raises concerns about the sustainability of margins.
- Some caution is expressed over the need for strategic adjustments to defend market share in multi-listed options, as reduced revenue capture may weigh on profitability.
- Receding volatility in Q3 led to dampened exchange volumes across asset classes, which could pose risks to earnings performance in the near term.
- Uncertainty remains around how quickly new growth avenues will translate into meaningful earnings contributions given the evolving market structure.
What's in the News
- Cboe Global Markets raised its 2025 earnings guidance, projecting organic total net revenue growth in the low double-digit to mid-teens range. This is an increase from previous forecasts of high single-digit growth. Data Vantage organic net revenue growth is anticipated in the high single-digit to low double-digit range, an increase from prior guidance (Key Developments).
- The company announced plans to launch Cboe Continuous futures on its Futures Exchange starting November 2025, pending regulatory review. These new bitcoin and ether contracts will feature a 10-year expiration and aim to simplify long-term digital asset trading for U.S. traders (Key Developments).
- Cboe Global Markets' board declared a 14% increase to its quarterly cash dividend, raising it to $0.72 per share for the third quarter of 2025. The dividend is payable on September 15, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $247.47 to $250.63, indicating modest improvement in expected value.
- Discount Rate edged up marginally from 8.13% to 8.16%, reflecting a small increase in risk assumptions.
- Revenue Growth remains negative but improved, changing from -16.88% to -16.61%. This indicates a slight reduction in forecast contraction.
- Net Profit Margin increased from 42.94% to 44.21%, suggesting better anticipated operational efficiency.
- Future P/E declined from 29.11x to 27.86x, implying a less expensive forward valuation based on earnings projections.
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