Goldman Sachs Ups CBOE Holdings Rating to Neutral

Goldman Sachs has upgraded its rating for CBOE Holdings (CBOE) from Sell to Neutral, citing attractive valuation and reduced competitive risks. Analyst Alexander Blostein said the stock's current EV/EBITDA of 13 times is a 9% discount to three-year averages, making it undervalued relative to its Fair Value.

The analyst noted that the company trades at a PEG ratio of just 0.42, suggesting compelling value relative to growth prospects. He also mentioned that the near-term volumes backdrop remains supportive on earnings per share upside and the build-up of cash on the balance sheet enhances the firm's financial flexibility.

Since Goldman Sachs added CBOE to its Americas Sell List, the shares have risen 44.6% versus the S&P 500 up 28.1%, driven by better than expected volume trends within its SPX complex as retail activity accelerated over the past few years.