Cboe(CBOE) Benzinga·2025-04-10 22:29Core Viewpoint - BofA Securities analyst Craig Siegenthaler downgraded Cboe Global Markets Inc. from Buy to Neutral, lowering the price target to 260, citing concerns over future performance despite strong year-to-date gains [1][2]. Company Performance - Cboe Global Markets has delivered a 5% return year-to-date, outperforming its peers by approximately 15%, while the broader diversified financials sector has declined by 10% [1][2]. - The strong performance is attributed to Cboe's defensive business model, which benefits during periods of heightened market volatility and increased trading volumes [2]. Valuation Metrics - Cboe's next 12 months price-to-earnings (P/E) ratio has increased by 2% this year, while the average P/E multiple for the broader sector has dropped by 13%, making Cboe about 15% more expensive relative to its peers [3]. Future Outlook - A potential deceleration in trading volumes is anticipated in the second half of 2025, with a projected 6% drop in volumes from the first to the second half of the year [4]. - The first half of 2025 is expected to mark the cyclical peak for exchange volumes, with only a 7% year-over-year increase in total options volume for the second half of 2025 [4]. Earnings Estimates - Earnings estimates for the second half of 2025 and subsequent years have been lowered, with new projections of 9.89 for 2026, and 5.07, 12.99, respectively [5].