Story updated at 9:55 a.m. to reflect market activity.
Shares of CBOE fell -0.1% to $53.34 in morning trading.
The analyst firm also raised its EPS estimates for the company through 2015. Credit Suisse analysts expect CBOE to report earnings of $2.16 a share for full year 2014, up from its previous estimate of $2.07 a share for the year. The firm raised its 2015 EPS estimates to $2.35 a share, up from its previous $2.30 a share.
While the firm raised its price target and EPS estimates, analysts Christian Bolu and Ashley N. Serrao wrote that "our estimates remain below consensus as we await more concrete signs that current volume growth trends can be sustained (open interest growth, traction of newer products)."
Separately, TheStreet Ratings team rates CBOE HOLDINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CBOE HOLDINGS INC (CBOE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CBOE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.37, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, CBOE HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 52.66% to $32.92 million when compared to the same quarter last year. In addition, CBOE HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 0.71%.
- CBOE HOLDINGS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CBOE HOLDINGS INC increased its bottom line by earning $1.99 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($2.14 versus $1.99).
- You can view the full analysis from the report here: CBOE Ratings Report
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