CME Group initiated with a Hold at TD Cowen

TD Cowen analyst Bill Katz initiated coverage of CME Group with a Hold rating and $221 price target. CME is an attractive footprint, operating a dominant pure play derivatives platform that generates high margins and free cash flow, with potential for more balanced capital return algorithm in the wings, the analyst tells investors in a research note. The firm adds however that expect the stock will remain range-bound intermediate term as investors contend with three issues – the potential encroachment to monopolistic interest rate derivatives platform, decelerating interest rate average daily volue, and a rising index volatility.