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Analysts from Piper Sandler and Bank of America Securities have expressed bullish sentiments towards Cboe Global Markets (NYSE:NYSE:) and AllianceBernstein (NYSE:NYSE:) on Friday. The financial sector has been under scrutiny as the third quarter of 2023 comes to a close, with both companies showing promising signs.
Patrick Moley from Piper Sandler maintained a Buy rating on Cboe Global Markets, raising the price target to $174 from $160. The company’s shares closed last Thursday at $156.40, near its 52-week high of $158.71, as per InvestingPro data. Moley expects CBOE to report its fifth consecutive record quarter for index options volumes and the tenth consecutive quarter-on-quarter increase in volumes.
InvestingPro data shows that CBOE has a strong financial position with a P/E Ratio of 25.13 and a PEG Ratio of 0.12. Furthermore, the company has shown a revenue growth of 6.88% in the last twelve months. CBOE has also been consistent in rewarding its shareholders with a dividend yield of 1.36%.
Moley also noted that CBOE shares are up 3.1% since the former CEO resigned, contrasting with the decline of its average U.S. exchange peer and the S&P over the same period. This outperformance is suspected to be due to investors pricing in greater odds of a potential sale following the loss of its long-time CEO.
InvestingPro Tips highlights that CBOE yields a high return on invested capital and has raised its dividend for 8 consecutive years. The company is also trading at a low P/E ratio relative to near-term earnings growth. These insights, along with many others, are available as part of the InvestingPro product. For more such tips, visit InvestingPro Pricing.
In 2021, media reports suggested that CME Group Inc (NASDAQ:NASDAQ:) had approached CBOE with an offer, but this was denied by CME. If a sale was to occur, Moley believes CME is the most likely acquirer.
On September 19, Deutsche Bank also maintained a Buy rating on CBOE stock with a $168 price target. The consensus among analysts is a Moderate Buy for Cboe Global Markets, with a price target consensus of $160.
In regards to AllianceBernstein (AB), Craig Siegenthaler of Bank of America Securities maintained a Buy rating today. The company’s shares closed last Thursday at $30.62, close to its 52-week low of $29.05. The general consensus among analysts suggests a Moderate Buy rating for AllianceBernstein with a $40 average price target.
Cboe Global Markets has been in the news recently due to several significant events. The company declared an increased third-quarter 2023 dividend, and its price target was raised to $161 from $148 at Argus. Additionally, notable gains were observed among liquid option names on September 19th.
As the financial sector continues to evolve, analysts remain optimistic about the future of these companies.
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