FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Keeps Buy Opinion On Shares Of Cme Group Inc.

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $60 to $320, based on a forward P/E of 24.5x our 2027 earnings estimate, a premium to historical averages given an improved margin profile. Our reduced target price reflects rising competition. Previously, we expected CME's valuation multiple to expand alongside solid earnings and revenue growth. However, the CFTC's approval of Bitcoin perpetual futures at Kalshi is likely to pressure valuations for traditional exchange operators as investors fear more approvals are in the pipeline. If regulators extend approval to other asset classes and trading products, traditional exchanges could lose significant market share, especially in retail trading. We believe CME faces moderate risk given its exposure to futures and retail. Other exchanges likely to face pressure include Cboe Global Markets Inc. (CBOE 274 ****), Nasdaq Inc. (NDAQ 88 *****), and Intercontinental Exchange Inc. (ICE 141 ****), noting the last two are less of a concern due to their stronger institutional focus.

Related Articles

Research

Research Alert: CFRA Lowers Opinion On Shares Of Cboe Global Markets To Buy From Strong Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our reduced opinion reflects rising competition. Previously, we expected CBOE's valuation multiple to continue to expand alongside its strong earnings and revenue growth. However, the CFTC's approval of Bitcoin perpetual futures at Kalshi is likely to pressure valuations for traditional exchange operators as investors fear more approvals are in the pipeline. If regulators extend approval to other asset classes and trading products, traditional exchanges could lose significant market share, especially in retail trading. We believe CBOE faces the greatest risk given its significant, fast-growing retail businesses. CME Group (CME 249 ****), Nasdaq (NDAQ 88 *****), and Intercontinental Exchange (ICE 141 ****) are also likely to face pressure, though less severely due to their stronger institutional focus. We lower our 12-month target price by $85 to $365, based on a forward P/E of 26.6x our 2027 estimate, a premium to the peer average of 19.6x, given less vulnerability to AI disruption and efficiency improvements.

$CBOE
Research

Research Alert: Another Day... Another Berkshire Deal

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Berkshire resumed share buybacks in Q1 2026 with $234M of repurchases after no buybacks in 2025, while maintaining a cash position exceeding $380B at March 31. The company recently completed several major transactions including a $10B investment in Alphabet's $80B equity raise and acquisitions of Taylor Morrison ($8.5B) and Oxychem ($9.7B). We maintain our Hold recommendation on BRK.B shares, believing mixed fundamentals and potential erosion of the "Buffett premium" temper our outlook. Investor reaction to recent M&A has been muted, with most preferring increased share repurchases. We estimate Berkshire has $80B to $100B available for acquisitions and buybacks from its substantial cash reserves. At current levels, shares trade at approximately 22x our 2026 operating EPS estimate, roughly in line with the three-year average forward multiple of 23x. We believe eroding fundamentals and uncertainty surrounding the significant management transition, coupled with adequate valuation, merit caution in the near term.

$BRK.B
Research

Research Alert: CFRA Maintains Buy Rating On Unity Software Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raised our target price to $41 from $28, based on 7x (previously 4x) EV/2027E sales, reflecting Unity's accelerating transformation into a scaled AI-driven ad-tech platform with improving unit economics. We increased our 2026 and 2027 revenue estimates to $2.1B and $2.4B, up from $2.0B and $2.3B, as well as our adjusted EPS estimates to $1.05 and $1.30, up from $0.95 and $1.28, to reflect the favorable business mix shift as the company sunsets lower-margin ironSource revenue and divests Supersonic. In our view, Unity is executing well on its portfolio restructuring, and we see an improving revenue and margin outlook as Vector AI scales rapidly and Unity 6 achieves record adoption rates. Q2 guidance reinforces this momentum, with Strategic revenue expected at $455M-$465M (+29-32% Y/Y) and Strategic Grow revenue of $302M-$306M (+50-52% Y/Y), trends we believe are sustainable through 2027 as ironSource headwinds dissipate and Vector AI becomes the dominant growth driver.

$U