CME Group dips after JPM downgrades to 'underweight'

Bgc

21/06/2024 15:33

** Shares of derivatives exchange CME Group  CME.O  fall as
much as 2.2%, last down 1.4% at $195.80
    ** J.P.Morgan Securities downgrades CME to "underweight"
rating from "neutral"; cuts PT to $187 from $206, a 5.8%
downside to stock's last close
    ** Brokerage says FMX Exchange, backed by some of Wall
Street's biggest banks and traders, presents the most credible
challenger to CME to date
    ** Billionaire Howard Lutnick's brokerage BGC Group  BGC.O 
is entering the U.S. interest rate futures market in late summer
    ** JPM says market participants are frustrated at CME's
behavior as a monopoly, including regular price increases and
lack of product innovation
    ** Adds that FMX's success will ultimately depend on whether
it can win over asset manager participants, which are likely
CME's most sticky customers
    ** Eight of 17 brokerages rate the stock "buy" or higher,
six "hold" and three "sell"; their median PT is $228 - LSEG
    ** As of last close, CME shares down 5.8% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))