Bank of America has adjusted its stance on Cboe Global Markets (CBOE, Financial), changing its rating from "Buy" to "Neutral." The bank also lowered its price target for the stock to $227, down from the previous target of $260.
The decision to downgrade stems from the impressive performance of Cboe's stock so far this year, combined with a higher relative valuation. Cboe is currently deemed 15% more expensive relative to its peers, as the average multiple for diversified financials has dipped by 13% year-to-date.
Additionally, BofA cites a more favorable ownership structure and potential for decreased trading volume in the latter half of the year as factors influencing the revised outlook.
