OK, this is just starting to confuse me. BOT is trading around $95 right now...that's down about $9 for the day. Anyone have any explanations regarding the way this stock is acting? Where do you think it's heading? I'm hoping we will see it move back up to at least $110 by the end of the week.
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Bot
- Thread starter redbull13
- Start date
Besides the Baron's article. 4 firms came out with coverage today, all were bearish.
From briefing,
CBOT Holdings: Initiation details (BOT) 104.00 : Sandler initiates BOT with a Sell and $90 tgt, based on valuation. The firm notes that while CME has experienced a surge in volumes since Hurricane Katrina, the CBOT's volume growth has been more modest despite significant price appreciation in both stocks... CSFB initiates BOT with an Underperform and $85 tgt, as they believe that current market valuation has gotten ahead of itself. Firm says while volume growth, pricing power and low capital intensity all drive a powerful business model, they believe BOT shares' current 40% premium to global exchange peers and 13% premium to Chicago Mercantile Exchange (CME) shares are difficult to support. The firm estimates CBOT shares could garner upwards of $125/share in a merger with CME, but the likelihood of a near-term deal is unlikely. Keefe Bruyette initiates BOT with an Underperform and $87 tgt, as they believe CBOT's current valuation reflects an excessive premium relative to its exchange peers as well as its projected growth rates over the next two years. The firm believes CBOT would be an attractive acquisition candidate for another exchange owing largely to the significant potential cost synergies, as well as its dominant market share in U.S. Treasury futures contracts. It is their belief that the valuation is currently being supported in part by this speculation.
From briefing,
CBOT Holdings: Initiation details (BOT) 104.00 : Sandler initiates BOT with a Sell and $90 tgt, based on valuation. The firm notes that while CME has experienced a surge in volumes since Hurricane Katrina, the CBOT's volume growth has been more modest despite significant price appreciation in both stocks... CSFB initiates BOT with an Underperform and $85 tgt, as they believe that current market valuation has gotten ahead of itself. Firm says while volume growth, pricing power and low capital intensity all drive a powerful business model, they believe BOT shares' current 40% premium to global exchange peers and 13% premium to Chicago Mercantile Exchange (CME) shares are difficult to support. The firm estimates CBOT shares could garner upwards of $125/share in a merger with CME, but the likelihood of a near-term deal is unlikely. Keefe Bruyette initiates BOT with an Underperform and $87 tgt, as they believe CBOT's current valuation reflects an excessive premium relative to its exchange peers as well as its projected growth rates over the next two years. The firm believes CBOT would be an attractive acquisition candidate for another exchange owing largely to the significant potential cost synergies, as well as its dominant market share in U.S. Treasury futures contracts. It is their belief that the valuation is currently being supported in part by this speculation.