{
  "id": 13111540,
  "title": "Cboe rallies after Morgan Stanley double upgrade points to durable options growth",
  "url": "https://urgent.news/2026/10/09/cboe-rallies-after-morgan-stanley-double-upgrade-points-to-durable",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T12:24:10.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/cboe-rallies-after-morgan-stanley-double-upgrade-points-to-durable-options-growth-4941070"
  },
  "original_language": "en",
  "account": "Cboe Global Markets Inc (CBOE) experienced a 3.6% surge in its stock price during Friday's pre-market trading following a significant double upgrade from Morgan Stanley. Analyst Michael Cyprys lifted CBOE's rating from Underweight to Overweight, and significantly boosted his price target from $258 to $358. This strong performance is attributed to improved risk-reward prospects and the resolution of long-term uncertainties.\n\nThe key driver behind this upgrade is the extension of Cboe's licensing agreement with S&P Dow Jones Indices through 2051. This decades-long deal is crucial as it secures Cboe's lucrative proprietary SPX index options business, eliminating a significant valuation concern. Morgan Stanley also addressed competitive threats, stating that concerns about market disruption from perpetual futures are overstated compared to Cboe's core derivatives economics.\n\nAdditionally, CBOE's multi-list and index options trading volumes have proven more resilient than initially anticipated, providing a solid foundation for sustained organic revenue growth. The exchange's planned venture into company-specific KPI prediction markets also holds substantial upside potential, currently unpriced by market expectations.\n\nWith $826 million in net cash, Cboe maintains strong balance sheet flexibility to fund innovation, strategic initiatives, and shareholder returns. Currently trading at 17.6 times projected 2027 earnings, the stock offers a 4.4-turn discount to its three-year historical average P/E multiple of 22.0x. Morgan Stanley projects that this valuation gap will narrow as trading volumes accelerate, forecasting a 5.8% top-line compound annual growth rate through 2028 and a 10.2% annual earnings per share increase.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Morgan Stanley upgrades CBOE stock rating on license extension",
        "url": "https://urgent.news/2026/10/09/morgan-stanley-upgrades-cboe-stock-rating-on-license-extension",
        "published": "2026-10-09T08:02:57.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}