CBOE Stock Forecast & Price Target

Cboe Global Markets has demonstrated robust retail engagement, leading to options volume growth that has outperformed industry futures volumes. The company has raised its full-year total organic net revenue growth guidance to high single digits, reflecting stronger-than-expected first-half results. Additionally, Cboe's exclusivity in trading key index options, such as Zero Day to Expiry options (0DTE), combined with its ongoing international expansion efforts, positions the firm favorably within the options market.

Cboe Global Markets's reliance on its options exchange, which accounts for approximately 60% of its revenue, presents potential vulnerabilities given the firm's recent decisions, such as the closure of its Japanese equities business, which has adversely affected its operating metrics. Furthermore, management's actions to lower full-year expense guidance reflect not only an effort to maintain operating discipline but also suggest challenges in revenue generation, indicating that the firm may face significant headwinds. Despite expectations for strong revenue trends in the latter half of the year, the company's past performance and these strategic decisions raise concerns about its overall financial stability and future growth prospects.