Cboe Global Markets could benefit from the postelection volatility spike, according to Deutsche Bank.
Analyst Brian Bedell upgraded the exchange stock to buy from hold and raised his price target to $222 from $211.
Bedell said Cboe should maintain healthy revenue growth into at least 2025.
Further product innovation and greater adoption of options usage, such as at Robinhood, should also contribute to greater organic revenue growth, Bedell added.
Stronger revenue growth should eventually enable positive operating leverage, allowing the company to outperform existing expectations of operating margin stability.
Persons:
Brian Bedell, Bedell, Cboe
Organizations:
Cboe, Deutsche Bank
Locations:
Robinhood