Jefferies raises Cboe stock price target to $233 on strong index options
Investing.com
Published Jul 14, 2025 06:50AM ET
Investing.com - Jefferies raised its price target on Cboe Holdings (NYSE:CBOE) to $233.00 from $217.00 on Monday, while maintaining a Hold rating on the stock. The stock currently trades at $228.57, near its 52-week high of $240.66, with InvestingPro data showing a "GREAT" overall financial health score.
The price target increase was driven primarily by stronger-than-expected index options and European equities volume. Jefferies revised its revenue estimate from index options higher by approximately $15 million, and European equities revenue was revised higher by approximately $5 million.
The firm also noted better revenue per contract for both products, resulting in an overall transaction revenue increase of $16 million compared to previous estimates. Jefferies increased its operating margin estimate from 61.9% to 63.9%.
For fiscal year 2025, Jefferies is modeling Data & Vantage growth of 8.4% year-over-year, compared to Cboe's guidance of 7-10%. The firm's operating expense estimate for FY25 of $836 million falls modestly under Cboe's guidance range of $837 million to $852 million.
This will be the first quarter investors will hear from new CEO Craig Donohue regarding potential strategy changes in areas such as investment, mergers and acquisitions, and capital return.
In other recent news, Cboe Global Markets reported mixed trading volumes for May 2025. The company saw a 27.6% year-over-year increase in its multiply-listed options contracts, while index options rose by 14.7% compared to the previous year. However, futures contracts experienced a notable decline, dropping 22.5% from May 2024. UBS maintained a Neutral rating on Cboe Holdings, noting a 12% year-over-year increase in total net revenue for the second quarter, driven by strong index options performance. Raymond James reiterated its Market Perform rating, expressing uncertainty about the sustainability of growth in Cboe's index options complex. In a strategic move, Cboe consolidated its bitcoin and ether futures trading onto a single platform to enhance customer access and efficiency. Additionally, the company announced executive leadership changes, with Dave Howson set to resign, and expanded roles for Cathy Clay and Chris Isaacson. These developments reflect Cboe's ongoing efforts to adapt and grow in a dynamic market environment.
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