Summary:
- CME Group (CME, Financial) is exploring strategic expansion in its aluminum contracts' delivery network within Hong Kong.
- Analysts provide a mixed outlook with a median price target of $276.87, suggesting a modest downside.
- Current analysis rates CME Group as a "Hold" with a GF Value projecting future challenges.
CME Group (CME) is actively engaging with Hong Kong authorities to enhance its aluminum contracts' physical delivery network. This initiative follows the precedent set by the London Metal Exchange's recent approval for similar plans. The strategic objective is to tap into pricing arbitrage opportunities that exist between the dynamic Chinese market and broader international trading systems.
Analysts' Price Target Insights
According to projections from 15 industry analysts, CME Group Inc (CME, Financial) is anticipated to reach an average target price of $276.87 over the next year. This includes a high estimate of $305.00 and a low of $225.00. Currently, this suggests a potential downside of 1.33% from its existing price of $280.60. Detailed price target data can be accessed on the CME Group Inc (CME) Forecast page.
Consensus Recommendations from Brokerages
The consensus recommendation from 18 brokerage firms for CME Group Inc (CME, Financial) is currently at 2.6, categorizing it as a "Hold." This recommendation scale, varying from 1 to 5, signifies '1' as a Strong Buy and '5' as a Sell. This rating indicates a balanced perspective among analysts about CME's current market performance.
GF Value Assessment
According to GuruFocus estimates, the GF Value for CME Group Inc (CME, Financial) in one year is pegged at $257.09, which suggests an 8.38% downside from the present price of $280.6. The GF Value is an indication of the stock's fair market value, developed from historical trading multiples, prior business growth, and projected future performance. For additional insights, view the CME Group Inc (CME) Summary page.
