JPMorgan Downgrades CME Group (CME) to Underweight

JPMorgan analyst Kenneth Worthington downgraded CME Group (NASDAQ: CME) from Neutral to Underweight with a price target of $187.00 (from $206.00).

The analyst comments: "FMX presents by far the most credible challenger to CME to date. FMX Exchange is being launched by BCG and is being backed by nine equity partners including seven of the largest market makers in interest rates (including JPMorgan) and three of the derivatives markets largest dealers. We expect FMX will launch the trading of options and FX- focused futures products in late summer, and will build out nine interest rate focused leveraging the success it has had with Fenics in cash rates trading, where it has leveraged strong technology to build a nearly 30% market share, some of which was taken from CME. We recapped our recent conversation with FMX Chairman, Howard Lutnick, and President of FMX Futures Exchange, Robert Allen. Our view has been that FMX is a credible threat to CME and further due diligence has solidified that view."

For an analyst ratings summary and ratings history on CME Group click here. For more ratings news on CME Group click here.

Shares of CME Group closed at $198.49 yesterday.

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